FEDERAL BUREAU OF INVESTIGATION
FOI/PA
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17-1 (Rev. 8-11-03)
ATTENTION
The following documents appearing in FBI files have beai reviewed under the provisions of The Freedom of
Information Act (FOIA) (Title 5, United States Code, Section 552); Privacy Act of 1974 (PA) (Title 5, United States Code,
Section 552a); and/or Litigation.
D FOIA/PA D Litigation CU Executive Order Applied
Requester:
Subject:
Computer or Case Identification Number;
Title of Case: Section
File
Serials Reviewed:
Release Location; *File
Section
This file section has been scanned into the FOIPA Document Processing System (FDPS) prior to National Security
Classification review. Please see tlie documents locat ^ in the FDPS for curr ent classification action, if warranted.
inquires about the FDPS to RIDS Service Request Uni] ^ (
File Number: ///-
Serial(s) Reviewed:
Section
FOIPA Requester;
FOIPA Subject;
FOIPA Computer Number: /C)3
File Number: Section
Serial(s) Reviewed:
FOIPA Requester:
FOIPA Subject:
FOIPA Computer Number:
File Number: Section
Serial(s) Reviewed;
FOIPA Requester:
FOIPA Subject:
FOIPA Computer Number:
THIS FORM IS TO BE MAINTAINED AS THE TOP SERIAL OF THE FILE, BUT NOT SERIALIZED.
SCANNED BY DoqLab (RMD)
DATE: //4p//7?^
ATTENTION
DO NOT REMOVE FROM FILE
EHO 008 0110132 Z
'R h 00130 Z JAN 85
PHILADELPHIA C 1 94 ~ 36 i )
DIRECTOR ROUTINE
U N C L, A S
ATTENTIONfi:r'
eLSLJ;R INDEX
R, BUDD DWERi £T AL? HOBBS Ad-CORd
PUBLIC OFFICIALS,
00 : PHILADELPHIA.
CAPTIONED -matter^
^oo.
1985 . JURY SELECTION TO 'BEGIN JANUARY, 1985 .
' 'fck-.
£S£)-i.£S . , . f
Asst. Dij.: ' I
£?rvs:'. i 'N
jfevj. ^ I '
I
I iQl^TOtOfV ' <
'I **430* Com. I
I CJ Coriij. !
I G^Public Affs. I
I fisc, fclgnt I
I Tech. Sgfvs. I
I Troming |
STofsphohe Rm,^_ _J
I Director’s Sec'y / 1
f* ^
reiAL O.N FEBRUAfliY 5 ,
AUSA ASSIGNED THIS HATTER HAS REQUESTED THAT THE J^OlfOvmGj
potential witnesses, be searched through ELSUR;
ALAN ROGERS .STONEMAN, JOHN R. TORQUATOyJR . , WILLIAH T. SMITH..
IT IS NOTED PHILADELPHIA ELSUf/X^S/a X^FEJ irNQy rfol
at Trfis/riffi, IT IS WOT known.
I | is IDENTICAL TO POTENTIAL WITNESS. JAN 22 1985
request of the BUREAU; CONDUCT ELSUR CHECK ON ABOVE llSTED
T-r
5^-
FH0Ci5 35 4 064 0Z
Of
|Exec..AqiE ff„;v . ,.-;!
fAssUDif::;
A^m.Sew?.
Wrc. tn^.
jn^pec:'.0{f -
(i »= — — ,’
Latcratary, , —
1 — ^.-r— ’
li pih tH CW3. i;
f| G.Pu!i;;i
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|T9tej3hfln?Wnv^;^
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b7C
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HR HI PG
“ TPl
H 2t0S40Z'PE8 S5
F’‘1 PHILADELPHIA C194C-361) (HRA) (P)
TO DIRECTOR , ROUTIi'£
eUAMTKD ROUTII^S
PITTSBURGH ROUTI^E
ST
Lr:cLA9 ^ / ''r- I
TRiASURER O F PE>;>:SYL VA^IA ; ET AL ; H03ES ACT CORSPIH- |
ACY hightail BRIBERY; MAIL FRAUD; 00 :PKILADZLPHIA
FOR THE I.-IFOR'-iATIOM OF THE BUREAU, SUBJECT HERBERT V/AS SEN'TE;|CED
TO ORE YEAR A>3 ONE DAY AtS IS CURREMTLY INCARCERATED. SU3JE
D'AGL'ATO v.'AS SENTENCED TO FOUR YEARS IN CUSTODY AND IS TO
MARCH !!, 19 G5. SUBJECT ELLIS BAS SENTENCED TO TB’O YEARS |'s|^|i'^!^ED'! y
AFTER SERVICE OF 33 DAYS TO OOf’MERCE MARCH 1!, 19 85,
TRIAL FOR REMAINING SUBJECTS BILL NOT BEGIN BEFORE MARCl^-5-r'lS S5 ,
A;'0 POSSIBLY lOT BEFORE MARCH 13, 19S5. USA'IDPA INTENDS TO PROJECT
THE 00''EE'i'’TS OF OOMPLTEP FLOPPY -DISKS ON P. V. ■■BMITORS IN THE
COURTROOM DURING TRIAL USING FBI COMPUTER EXPERTS FRO ;i THE UHITE COCb^XR
')/
[qU<
m tf.
/O'
■sS'l
Va VtB 26 1395
lV(*r VD
m
PAGE TWO, PH 1940-36 1, U^'CLAS
CRl!€ LIMIT IM PJJAMIICO, THESE COi-lPOTEH DISKS CX)HT AIMED THE KAMES
OP POLITICIANS THE SUBJECTS I^lTEHDSD TO BPIBE AND T.HESE WERE
SEIZED IN THE SEARCH OF D VAQUATO *S RESIDENCE OH JULY 5, 194.
THIS IHVESTIGATIOM IS BEING CONDUCTED IN Tl-D AND POSSIBLY
THREE PHASES AtTD THE CURRENT TRIAL '*ULL CONCLUDE PHASE ONE
WHICH WAS DIRECTED TOVMRDS THE IM)IVIDUALS OFFERING THE BRIBES.
PHASE TWO 5fILL BEGAN AT THE COMPLETION OF CURRENT TRIAL AND WILL
BE DIRECTED TOWARD THE PLIBLI C OFFI Cl ALS ACCEPTING OR AGREEING
TO ACCEPT THE BRIBES. TO DATE, ALL THREE OF THE SUBJECTS WHO
HAVE PLED GUILTY HAVE CX)OPERATED WITH THE GOVERNMENT AND WILL
TESTIFY IN UPOOniNG TRIALS.
PHILADELPHIA WILL ADVISE THE BUREAU OF FURTHER DEVELOPMENTS
AS T !-fE Y 0 CCUR .
3T
F8I/DOJ
Property Type Codes*
Potential Economic Loss Prevented:i(PEt:P) Type Codes*
Code , ,,
No Description
1 Cash (U.S. and foreign currency)
2 Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
3 General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
4 Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
5 Heavy Machinery & Equipment (heavy equipment, computers, etc)
6 Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
7 Jewelry (including unset precious and semiprecious stones)
8 Precious Metals (gold, silver, silverware, platinum, etc)
9 Art, Antiques or Rare Collections
10 Dangerous Drugs
1 1 Weapons or Explosives
1 2 Businesses or Assets Forfeited
20 All Other Recoveries (not falling in any category above)
Code ,1
No Description ^
22 Counterfeit Stocks. Bonds. Currency or Negotiable Instruments
23 Counterfeit or Pirated Sound Recordings or Motion Pictures
24 Bank Theft Scheme Aborted
25 Ransom, Extortion or Bribe Demand Aborted
26 Theft from, or Fraud Against, Government Scheme Aborted
27 Commercial or Industrial Theft Scheme Aborted
30 All Other Potential Economic Loss Prevented (not falling in any
category above)
*The case file must contain an explanation of the computation of the recovery value or loss prevented. An explanation airtel must accompany this
report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
- Enter Description Code Only When Reporting a Conviction -
Organized Crime Subjects:
lA Boss, Underboss or Consigliere
IB Capodecina or Soldier
1 C Possible LCN Member or Associate
1 D OC Subject Other Than LCN
Known Criminals (Other Than OC Members):
2A Top Ten or 1,0. Fugitive
2B Top Thief
2C Top Con Man
Foreign Nationals:
3A Legal Alien
3B Illegal Alien
3C Foreign Official Without Diplomatic Immunity
3D U.N. Employee Without Diplomatic Immunity
3E Foreign Students
3F All Others
Terrorists:
4 A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
*lf a subject can be classified in more than one of the
Union Members:
5A International or National Officer
5B Local Officer
5C Union Employee
Government Officials Or Employees:
Federal State
6 A Presidential Appointee 6J Governor 6F
6B U.S. Senator 6K Lt. Governor
6C U.S. Representative 6L Legislator 6S
6D Judge 6M Judge 6T
6E Prosecutor 6N Prosecutor 6L
6F Law Enfoicement Officer 6P Law Enforcement Officer 6V
6G Fed Exec • GS 1 3 & above 6Q All Others • State 6V
6H Fed EmpI - GS 1 2 & below
Bank Officers or Employees:
7 A Bank Officer
7B Bank Employee
All Others:
8A All Other Subjects (not fitting above categories)
categories, select the most appropriate in the circumstance.
6S Legislator
6T Judge
6U Prosecutor
6V Law Enforcement Officer
6W All Others - Local
Instructions
Subject Priorities for FBI Arrest or Locates:
A - Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
B - Subjects wanted for crimes involving the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C - All others
Claiming Convictions Other Than Federal:
It is permissible to claim a local (state, county or local) conviction if the FBI’s investigation significantly contributed to the successful local prosecution. A
succinct narrative setting forth the basis for claiming a local conviction must accompany this report. When claiming a conviction other than Federal, enter the
word "LOCAL" In the Conviction-Section” block, disregard the number of conviction counts, but enter the sentence in the appropriate blocks. Enter "LF" in
the “In-Jail” block for all life sentences and “CP” for all capital punishment sentences.
Reporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conviction information can be submitted
by itself if;
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions.
Rule 20 Situations:
The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures,
Investigative Assistance or Techniques (lAfTs) Used: i
-Since more than one lA/T could have contributed to the accomplishment, each lA/T must be rated. • \
-The lA/T used must be rated each time an accomplishment is claimed. (For example - if informant information was the basis for a complaint, an arrest, a
recovery and a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishments, the “Informant Information” block mustjoe'
BURGH
FD-515 (Rev. 2-27-84) . •
ACCOMPLiSHMENT REPORT (Effective 10/1/8 J
(SutMTiit within 30 d«ys from data of accomplishmant)
f VloCi i . dTRECTOR, FBI
FROM:
SUBJECT:
R. BUDD^DWYER
TREASURER OF PENNSYLVANIA,
ET AL;
HOBBS ACT
(00: PHILADELPHIA)
2/7/85
Investigativo Assistance or Technique Used ^
Were any of thSUnyaptigative assistance or techniquee listed below used in connection with accompishment
bemri rJaimed? No O Yes - If Yea. rate each used as follows;
^ tmt did not help
2 w Helped, but only minlmsNy
^ ^ ^ ^ . Absolutely essential
1 B. Show Money Rating
Usage
1 . Acctg Tech Plating
Assitance
6. ELSUR - Rating
Title III
1 1 . Lab. Div. Rating
Field Support
17. Surveil.
Sqd Asst
2 . Aircraft
Assistance
7. Hypnosis
Assistance
12. Pen
Registers
18. SWAT Team ^
Action / //
3. Computer
Assistance
8. idem Oiv
Assistance
13. Photographic
Coverage
19. Telephone
4. Consensual
Monllonng
9. Informant
Information
14. Polygraph j
Assistance /
/ OiyFation
5. ELSUR •
FISC
10. Lab Oiv
1 S. Search Warrants /
Executed
21. Visual Invest •
, Analy^ fV(A)
Raattiutiona, Court Ordarad ForfaHuraa or Polantiai Economic Lo«« Pravantad (PELP)
F8I Arreats
FBI Locates
Number of Subjects of FBI Arrests Who Physically Resisted _
Number of Subjects of FBI Arrests Who Were Armed
2
Criminal Summons Subpoenas Served
Property or
PELP Type
Code
Recoveries
Restitutions
Court Ordered Forfeitures
PolentiaJ Ecormmlc
Loss Prevented
S
$
$
%
$
S
S
$
$
S
$
$
$
$
$
$
s
$
$
S
E. Civil Matters
Government Defendant
Government Plaintiff
$
$
Settlement or Award
S
S
Enter AFA Payment Here
Hostages Held By Ten-orists _
AM Other Hostage Situations _
Missing or Kidnapped Children LXK
F. Final Judicial Process: Judicial District
Subject 1 - Name -
Convictions (or Final Judicial Process) Date Sentence Date
Subject’s Description Code*-
n Pretrial
I I Diversion
I— I Dismissal
O Acquinal
-Convictions-
Enter conviction and
sentence data in space at
right. If more than tour
sections are involved, limit to
the four most relevant.
Do not report conviction
until sentence has been
pronounced
II
□ □
Conviction
Combined Sentence |
Title
Section
Counts
In-Jsll Term
Suftp«nd«d
Probation
Total Fines
Yrs
Mos
Yrs
Mos
Yrs
Mos
□ Plea
D Trial
S
Consecutive Sentences - Add all consecutive sentences together.
Concurrent Sentences - Enter longest single term. Do not add concurrent sentences together.
If the sentence is 1 0 years in custody ot the Atty Gen. but 8 years are suspended, the
In-Jail term would be 2 years.
Subject’s Oescrtpttoo Code * - j
I Subject Z - Name -
0 Pretrial
1 I Diversion
I I Dismissal
Q Acquittal
•Convictions-
Enter conviction and
sentence d«aa in space at
right. If more than tour
sections are involved, limit to
the tour most relevant.
Do not report conviction
until sentence has been
pronounced.
Q Felony
Q Misde-
n Plea
□ Trial
m
Combined Sentence |
IfKlall Term
Suspended
Probation
/TT
Yrs
Mos
Vre
Mos
Yrs
Mos
Total Fines
$
Consecutive Sentences • Add all consecutive sentences together. I
If the sentence is 1 0 trears
In-Jail term would be 2 yvats./
in custody Of the Atty Gen. but 6 years are suspended, the
* f f .
\ / MIP
^ /-pf m—
1
I Subject 3 Name -
i& ect;a ^escription Code*'
D Pretrial
j I Diversion
I I Dismissal
O Acquittal
-Convictions-
Enter conviction and
sentence data in space at
fight. If more than four
sections are involved, limit to
the four most relevant.
Do not report conviction
until sentence has been
pronounced
Conviction f J
□ Misde-
Title
Section
Counts
n Plea
Q Trial
/ t Combined Sentence |
* In-JsllTerm
Suspandad
Probation
Total Fines
Yrs
Mos
Yrs
Mos
Yrs
Mos
S
Consecubve Sentences - Add all consecutive sentertces together.
Concurrent Sentences - Enter longest single term~'Do not'add concunent. sentences together.
If the sentence is 1 0 years in custody of the Atty Gen. but 8 years are suspended, the
In-Jail term would be 2 years.
I Attach additional forms H reporting final judicial pr^ess on wora than three subjacfa, and submit a final diapoahlon tomi (R-ea) tor each subject. |
laba
Subpoenas served for witnesses to appear at trial on 2/5./^ 5.
^ 1-SSS
'^ar^WAM/drp (4)
^eSsSpA-everse side. Subject description codes in Section F are required only when reporting a conviction.
.. joint operations, identify the other Federal. State or Local Law Enforcement |LE) agency in the Remarks Section.
Property Type Code#*
Code
No Description
1 Cash (U.S. and foreign currency)
2 Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
3 General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
4 Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
5 Heavy Machinery & Equipment (heavy equipment, computers, etc)
6 Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
7 Jewelry (including unset precious and semiprecious stones)
8 Precious Metals (gold, silver, silverware, platinum, etc)
9 Art, Antiques or Rare Collections
1 0 Dangerous Drugs
^ 1 Weapons or Explosives
1 2 Businesses or Assets Forfeited
20 All Other Recoveries (not falling in any category above)
Potential Economic Loss Prevented (PELP) Type Codes*
APR - S : . .
Code
No Description
22 Counterfeit Stocks, Bonds, Cuirency or Negotiable Instruments
23 Counterfeit or Pirated Sound Recordings or Motion Pictures
24 Bank Theft Scheme Aborted
25 Ransom, Extortion or Bribe Demand Aborted
26 Theft from, or Fraud Against, Government Scheme Aborted
27 Commercial or Industrial Theft Scheme Aborted
All Other Potential Economic Loss Prevented (not falling in any
category above)
*The case file must contain an explanation of the computation of the recovery value or loss prevented. An explanation ^rtel must accompany this
report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
- Enter Description Code Only When Reporting a Conviction -
Organized Crime Subjects: Union Members:
1 A Boss, Underbcss or Consigiiere 5 A Internationa) or National Officer
t B Capodecina or Soldier 5B Local Officer
1 C Possible LCN Member or Associate 5C Union Employee
1 D OC Subject Other Than LCN Government Officials Or Employees:
Known Criminals (Other Than OC Members):
Federal
State
Local
2A Top Ten or l.O. Fugitive
6 A Presidential Appointee
6J Governor
6R Mayor
2B Top Thief
6B U.S. Senator
6K Lt. Governor
2C Top Con Man
6C U.S. Representative
6L Legislator
6S Legislator
Foreign Nationals:
6D Judge
6M Judge
6T Judge
3A Legal Alien
6E Prosecutor
6N Prosecutor
6U Prosecutor
3B Illegal Alien
6F Law Enforcement Officer
6P Law Enforcement Officer
6V Law Enforcement Officer
3C Foreign Official Without Diplomatic Immunity
3D U.N. Employee Without Diplomatic Immunity
6G Fed Exec - GS 1 3 A above
6H Fed EmpI - GS 12 & below
6Q All Others - State
6W All Others - Local
3E Foreign Students
3F All Others
Terrorists:
4A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
Bank Officers or Employees:
7A Bank Officer
7B Bank Employee
All Others:
SA All Other Subjects (not fitting above categories)
*lf a subject can be classified in more than one of the categories, select the most appropriate in the circumstance.
Instructions
Subject Priorities for FBI Arrest or Locates:
A ■ Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
B - Subjects wanted for crimes invoMng the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C - All others
Claiming Convictions Other Than Federal:
It is permissible to claim a local (state, county or local) conviction if the FBI's investigation significantly contributed to the successful local prosecution. A
succinct narrative setting forth the basts for claiming a local convicfion must accompany this report. When claiming a conviction other than Federal, enter the
word “LOCAL” in the Conviction-Section” block, disregard the number of conviction counts, but enter the sentence in the appropriate blocks. Enter "LF" in
the ‘In-Jail” block for all life sentences and "CP” for all capital punishment sentences.
leporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conviction information can be submitted
by itself if :
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions,
uie 20 Situations:
The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures,
vestigative Assistance or Techniques (lATTs) Used:
-Since more than of\e lATT could have contributed to the accomplishment, each lA/T must be rated.
-The lA/T used must be rated each time an accomplishment is claimed. (For example • if informant information was the basis for a complaint, an arrest, a
recovery and a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishmen|^^e “Infonnant Information" block must be
rated on each FD-51 5 even if it was the same Jnfori]^|n that contributed to ail the accomplishments.)
3
PHO00S 0gS0046Z
RR Hq la
R £800462 mR 85
nen:s.
IWw-us. .1^-
|;e«;a. env.. — ^
I
PHILADELi^HlA < 19 4C-3 61 ) (HR A ) CP)
DIRECTQI? ROUTINE
1 1 ic^tofy — — —
\\ icr* ^
IX ci w..
a
li C=c. C-’-gnt.^
h Tcih. Sep.'S.
|1 Tr:‘:«ni
ItTtilsphone tUn.»^
ij Director’s Sec’y «-
LOS AteEL
ROUTINE
U N C L A s I
a>
R. BUDD D^YERj TREASURER OF PENNSYLVANIA ET aL HOBBS ACT, 00:PHILaDE^~
RE PHILADELPHIA TELCaL OF SSRA
HARRISBURG
RESIDENT AGENCY TO WHITE COLLAR CRIME SECTION CHIEF, HELTERHOFR
RIVERSIDE, CALIFORNIA SSRa
AND SA
3ARST,^/,j ,
CALIFORNIA RA. ALL CALLS DATED MARCH 22, 1985. Uj^
REFERENCE TELCaLLS CONTAINED INFORMATION REGARDING THE MCJVEMENT
OF SUBJECT JOHN TORQUATO, JR., V/HO IS PRESENTLY CONFINED AX THE
BORON INSTITUTION IN CALIFORNIA, IN AN, EFFORT TO HAVE HIM IN THE
HARRISBURG AREA FOR TRIAL, WHICH IS SCHEDULED TO COf-P'^ENCE TUESDAY,
A.M. , MARCH 26, 1985. TORQUATO PREVIOUSLY PLEAD GUILTY IN THIS CASE
/‘A'-Vii.SS -
■>®flPR 2 1985
page two, 19 4C-361, U ~C I A S W
AND IS THE GOVEHWHENT’S CHIEF WITNESS AGAINST REPUBLICAN COUNTY
CHAiRflAN, WILLIAM SMITH AND CALIFORNIA ATTORNEY, ALLAN STOMEMaN.
IT IS NECESSARY FOR TORQUATO TO BE BROUGHT TO PENNSYLVANIA ON SUNDAY,
march 2A, 1985, arrangements HAVE BEEN WORKED OUT WITH THE BUREAU
OF PRISONS, EXECUTIVE OFFICES IN WASHINGTON, aND THEY HAVE RELAYED
THE arrangements TO THE CUSTODIAL PEOPLE AT THE BORON I i'JSTI TUTION .
b6
b7C
Sa | [ is scheduled to pick TORQUATO UP AT THE INSTITUTION APPROX-
iriATELY 9:00 a.M. AND TRANSPORT HIM TO LOS ANGELES INTERNATIONAL AIR-
PORT WHERE HE VJILL 3E PUT ON A NON-STOP FLIGHT TO DULLES AIRPORT,
WASHINGTON, D.C., HE WILL BE MET BY AGENTS OF THE HARRISBURG
RESIDENT AGENCY UPON HIS ARRIVAL, aND TRANSPORTED TO THE LEwISBURG
AREA, WHERE HE WILL BE MAINTAINED AS A PROTECTED WITNESS WITH AGENTS
ROUND THE CLOCK a.ND FOLLOWING HIS TESTIMONY HE WILL BE RETURNED TO
THE CALIFORNIA INSTITUTION. THE BUREAU OF PRISONS AND THE UNITED
states ATTORNEY’S OFFICE ARE IN COMPLETE AGREEMENT WITH THE MOVEMENT
OF TORQUATO IN THIS MATTER AND CALIFORNIA SHOULD PROCEED ViITH THE
ARRANGEMENTS WORKED OUT IN REFERENCED PHONE CALL,
BT
{?i^O020 08204 10Z
PP HQ. LA
P 2204 IS flAR 85
: V‘,-;
or :f<vii5nGAY!i3ri
f l . j Ajm ,
i C.-:::*. AO lnv.
•’crc«. m
.'Asar^: *i
PHILADELPHIA (194C-36i) (HRA) (P)
r::^
DIRECTUir-— "PR-rOlRlTY .a
LOS ANGELES
PRIORITY
R. BUDD^ViYER ;TREASURER ,OF PENNSYLVANIA, ET AL ; HOBBS ACT -C^O
RE PHILADELPHIA TELCALLS OF SSRA
HARRISBURG
RESIDENT AGENCY TO VHITE COLLAR CRINE SECTION CHIEF HELTERHOFF A
RIVERSIDE, CALIFORNIA SSRAL
CALIFORNIA RA DATED 3/22/85
BARS TOW,
iRDlNG^THE MOVEMENT OF
RE TELCALLS CONTAINED INFORMATION REG ARDlNG ^T HE MOVEMENT OF |
SUBJECT JOHN TORQUATO JR., WHO IS PRESENTLY CONFINED AT THE BORON
I^BTITUTION IN CALIFORNIA, IN AN EFFORT TO HAVE HIM IN THE ~
4 MAR 28 1985
HARRISBURG AREA FOR TRIAL WHICH IS SCHEDULED TO COMMENCE TUESDAY
MORNING 5/26/85 . TORQUATO PREVIOUSLY PLED GUILTY IN THIS CASE
Am IS THE GOVERNMENT’S CHIEF WITNESS AGAINST REPUBLICAN COUNTY
J 291985
PAGE TWO , U N C L A S I9AC'3S1
CHAIRMAN WILLIAM SMITH AND CALIFORNIA ATTORNEY ALAN STONEMAN.
A®
IT IS ffiCESSARY FOR TORQUATO TO BE BROUGHT TO PENNSYLVANIA ON
SU^DAY 5 /24 /85 . ARRANGEtCNTS HAVE BEEN WORKED OUT WITH THE
BUREAU OF PRISONS EXECUTIVE OFFICES IN WASHINGTON AMD THEY HAVE
RELAYED THE ARRANGEMENTS TO THE CUSTODIAL PEOPLE AT THE BORON
INSTITUTION. Sa | | is SCHEDULED TO PICK TORQUATO UP AT THE
INSTITUTION APPROXIMATELY 9:00 AM AMD TRANSPORT HIM TO LOS ANGELES
lOTERNATIONAL AIRPORT WHERE HE WILL BE PUT ON A NON-STOP FLIGHT
TO DELLAS AIRPORT, WASHINGTON, D.C. HE WILL BE MET BY
AGENTS OF THE HARRISBURG RESIDENT AGENCY UPON HIS ARRIVAL AND
TRANSPORTED TO LEWISBURG AREA WHERE HE WILL BE MAINTAINED AS
A PROTECTED WITNESS WITH AGENTS AROUND THE CLOCK AND FOLLOWING
HIS TESTITONY HE WILL RETURNED TO THE CALIFORNIA INSTITUTION., THE
BUREAU OF PRISONS AND THE U.S. ATTORNEY’S OFFICE ARE IN COMPLETE
AGGREEMEOT WITH THE MOVEMENT OF TORQUATO IN THIS MANNER AND
CALIFORNIA SHOULD PROCEED WITH THE ARRAMGEMEMT WORKED OUT IN
REFERENCED PHONE CALL.
b6
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PHO002 07822082
RR HQ PG LA
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J R I92208Z MAR 85
i a
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FM sac, PHIl/eLPHIA (19AG-3’6-iy^CHRA->^P)
TO ^D'lRfcrOpi PBI (ROUTINE)
PITTSBURGH ( ^4C-267) (ROUT INE
LOS AhffiSLES^SANTA ANNA RA) (ROUTINE)
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R./BUDD'DWYER , TREASURER , COMMONWEALTH OF PENNS YLVANIA ; ET AL ;
CONSPIRACY; ITAR - BRIBERY; MAIL FRAUD; HOBBS ACT; 00 s PHILADELPHIA
FDR THE INFORMATION OF RECEIVING OFFICES, TRIAL IN INSTANT
MATTER WILL BEGIN TUESDAY, MARCH 26, 19 85 , IN WILLIAMSPORT, PA.
[
USA JAMES WEST ADVISES TESTIMONY OF LOS ANGELES SAS
1 |and
aLL BE NECESSARY DURING
WEEK OF TRIAL. ADDITIONALLY, SA
|and I
] QUANTICO ,
ARE SCHEDULED TO TESTIFY MONDAY, APRIL 1, 1985 , AND SHOULD ARRIVE.
IN WILLIAMSPORT, PA, SATURDAY, MARCH 50, 1985 , FOR PRETRIAL-^ O''
PREPARATION. APPROPRIATE ACCOMODATIONS HAVE BEEN ARRANGED F^^'
PHILADELPHIA AND QUESTIONS SHOULD BE REFERRED TO SaF
2 JUN2
f/55
PAGE TWO, PH 194C-56I, UNCLAS
717-232-8686.
LOS ANGELES AT SANTA ANNA: SAS
|a(®
MARCH 25 , 1985 . QUANTICO SAs[
WILL TRAVEL TO WILLIAMSPORT, PA, ARRIVING
AND
WILL TRAVEL
TO WILLIAMSPORT , ARRIVING ON SATURDAY MARCH 30, 19 85.
PITTSBURGH AT PITTSBURGH: WILL ADVISE AUSA OF CHANGE IN TRIAL
0-4a (Rev. 5-31-83)
FEDERAL BUREAU OF INVESTIGA
WASHINGTON, D. C. 20535
'DATE: May 15, 1985 Re;
TO; Harrisburg Resident Agency
Post Office Box 312
Harrisburg, Pennsylvania 17108
R. BUDD DWYER, Treasurer of
Pennsylvania ;
ET AL;
HOBBS ACT; CONSPIRACY; ITAR -
BRIBERY; MAIL FRAUD
00: Philadelphia
b6
b7C
Invoice of Contents
Description of Contents;
Q2
14 photographic prints
3 negatives
uo
CO
to
o
CD
3
<
t-H
s
SE
S
Shipping #
Shipping Method
Weight of Hazardous Materials:
Packaged By
Signature
Date
Hazardous Materials Only
OT2j8i^;
BLMrddb:
5/15/85
-.'A
194-4683
50507044 P PN
Yourffl
□ Returrl
Room
Ext. _
□ Mail Room: 1 B327, TL 1 52
(registered mail)
□ PSM - Supply Unit, 1 B353
(not regis^d)
NO,'*
FBI/DOJ
2 / 20/85
Property Type Codes*
Code
No Description
1 Cash (U.S. and foreign currency)
2 Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
3 General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
4 Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
5 Heavy Machinery & Equipment (heavy equipment, computers, etc)
6 Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
7 Jewelry (including unset precious and semiprecious stones)
8 Precious Metals (gold, silver, silverware, platinum, etc)
9 Art, Antiques or Rare Collections
1 0 Dangerous Drugs
1 1 Weapons or Explosives
1 2 Businesses or Assets Forfeited
20 All Other Recoveries (not falling in any category above)
Potential Economic Loss Prevented (PELP) Type Q^to s*
Code
No Description ,
22 Counterfeit Stocks, Bonds, Currency or NegotiableTlnstruments
23 Counterfeit or Pirated Sound Recordings or Motion^t^tures
24 Bank Theft Scheme Aborted
25 Ransom, Extortion or Bribe Demand Aborted
26 Theft from, or Fraud Against, Government Scheme Aborted
27 Commercial or Industrial Theft Scheme Aborted
30 All Other Potential Economic Loss Prevented (not falling in any
category above)
‘The case file must contain an explanation of the computation of the recovery value or loss prevented. An explanation airtel must accompany this
report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
- Enter Description Code Only When Reporting a Conviction -
Organized Crime Subjects:
1 A Boss, Underboss or Consigliere
IB Capodecina or Soldier
1 C Possible LCN Member or Associate
1 D OC Subject Other Than LCN
Known Criminais (Other Than OC Members):
2A Top Ten or 1.0. Fugitive
2B Top Thief
2C Top Con Man
Foreign Nationals:
3A Legal Alien
3B Illegal Alien 't
3C Foreign Official Without Diplomatic Immunity
3D U.N. Employee Without Diplomatic Immunity.
3E Foreign Students
^ 3F All Others
Terrorists;
4 A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
*lf a subject can be classified in more than one of the
Union Members:
5A International or National Officer
5B Local Officer
5C Union Employee
Government Officials Or Employees:
Federal State
6A Presidential Appointee 6J Governor 6R
6B U.S. Senator 6K Lt. Governor
6C U.S. Representative 6L Legislator 6S
6D Judge 6M Judge 6T
6E Prosecutor 6N Prosecutor 6U
6F Law Enforcement Officer 6P Law Enforcement Officer 6V
6G Fed Exec • GS 1 3 & above 6Q All Others - State 6V\
6H Fed EmpI - QS 12 & below
Bank Officers or Employees:
7 A Bank Officer
7B Bank Employee
All Others:
8 A All Other Subjects (not fitting above categories)
categories, select the most appropriate in the circumstance.
6S Legislator
6T Judge
6U Prosecutor
6V Law Enforcement Officer
6W All Others - Local
Subject Priorities for FBI Arrest or Locates:
A - Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
B - Subjects wanted for crimes involving the toss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C - All others
Claiming Convictions Other Than Federal:
It is permissible to claim a local (state, county or local) conviction if the FBI’s investigation significantly contributed to the successful local prosecution. A
succinct narrative setting forth the basis for claiming a local conviction must accompany this report. When claiming a conviction other than Federal, enter the
word “LOCAL” in the Conviction-Section” block, disregard the number of conviction counts, but enter the sentence in the appropriate blocks. Enter "LF” in
the “In-Jail” block for all life sentences and “CP” for all capital punishment sentences.
Reporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conviction information can be submitted
by itself if:
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions.
Rule 20 Situations:
The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures,
fnvestlgatfvs Assistance or Techniques (lA/Ts) Used; \
-Since more than one lA/T could have contributed to the accomplishment, each lA/T must be rated. ^
-The lA/T used must be rated each time an accomplishment is claimed. (For example - if informant information was the basis for-ja complaint, an arrest, a
recovery and a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishments, the "Informant Information” block must be
rated on each FD-51 5 even if it was the ^U^r^ormation that contributed to all the accomplishment^^^,^
FD-51 5 {Rev. 2-27-84) ^
ACCOMPLISHMENT REPORT (Effective 10/1/89
(Submit within 30 days from date of accomplishment)
TO: DIRECTOR, FBI
2/27/85
hiladelphia
DWYER;
AL. ; MF; ITAR;
BRIBERY; CONSPIRACY;
HOBBS ACT ^
Bu/ia
Bureau RIe Number
194-C-361
Field Office File Number
4220
if a joint’ operation with
another Federal, State or
:al LE agency * *
le involves
forruption of a public
official (Federal, State or
Local).
A. Preliminary Judicial Process
(Numbar of subjects)
Complaints
Informations
Indictments
1
B. Arrests, Locates, Summonses A
Subject Priority (See Reverse) [
Subpoenas (No. of subjects)
A
B
c
FBI Arrests
FBI Locates
Were any of the investigativ
being claimed? Q No E
Investigative Assistance or Technique l^id ^
M
VuirVI
assistance or techniques listed below
] Yes ■ If Yes, rate each used as follows:
1 = Used, but did not help
2 = Helped, but only minimally
3 a Helped, substantially
4 s Absolutely essential
connection with accomplishment
I . Acctg Tech
Assitance
4. Consensual
Monitoring
5. ELSUR -
FISC
Number of Subjects of FBI Arrests Who Physically Resisted „
Number of Subjects of FBI Arrests Who Were Armed
Criminal Summons Subpoenas Served
D. Recoveries, Restitutions, Court OrC
6. ELSUR ■
Title III ^
7. Hypnosfe-'^'
8. Ident Div
Assistance
). Div.
2. Pen
Registers
|l3. Photograph!
Coverage
4. Polygraph
Assistance
16. Show iQ
Usage
17.Surveil.b7C
Sqd Ass _
18. SWAT lb 7 E
20. Undercovi
Operation
2 1 . Visual lnv<
Analysis (\l
ered Forfeitures or Potential Economic Loss Prevented (PELP)
Property or
PELP Type
Code
Recoveries
Restitutions
Court Ordered Forfeitures
Potential Economic
Loss Prevented
S
® i
S
$
$
$ !
1
s
$
$
$
s
$
$
S
$
$
$
$
$
5
E. Civil Matters
Government Defendant |
Government Plaintiff
$
$
Settlement c
>r Award
$ ,
$
Enter AFA Payment Here
C. Release of Hostages or Children Located: (Number of Hostages or Children
Located)
Hostages Held By Terrorists _
Missing or Kidnapped Children L
ill Other Hostage Situations ^
mr
~P7r
=Watr“
iinnzi
Trrnzs-
F. Final Judicial Procaat:
Subject 1 - Name - JUDITH AN^
Convictions (or Final Judicial Process) Data
Sentence Date
;llis
Subject's Oescriplion Code'
.8-A
n Pretrial
Diversion
U Dismissal
□
-Convictions-
Enter conviction and
sentence data in space at
right. If more than four
sections are involved, limit to
the four most relevant.
Do not report conviction
until sentence has been
pronounced.
S Felony
□ Misde-
Splea
□ Trial
18
1952
Combined Sentence
11
5,000
Consecutive Sentences ■ Add all consecutive sentences together.
Concurrent Sentences - Enter longest single term. Do not add concurrent sentences together.
If the sentence is 1 0 years in custody of the Atty Gen. but 8 years are suspended, the
In-J^l term would be 2 years.
[Subject 2 - Name -
Subject’s Description Code*-
n Pretrial
Diversion
U Dismissal
□ .
-Convlctions-
Enter
sentence data in space at
right. If more than four
sections are involved, limit to
the four most relevant.
Do not report conviction
until sentence has been
pronounced.
CH Felony
n Misde-
□ Plea
□ Trial
Combined Sentence
Consecutive Sentences ■ Add all consecutive sentences together.
Concurrent Sentences - Enter longest single term. Do not add concurrent sentences together.
If the sentence is 1 0 years in custody of the Atty Gen. but 8 yew^'are sus^nded, the
In-Jail term would be 2 years. ' ■
years' are suspendE
Subject 3 - Name -
Subject’s Description Code*-
-Convictions-
Enter conviction and
sentence data in space at
right. It more than four
sections are involved, limit to
the four most relevant
Do not report conviction
until sentence has been
pronounced.
IE Felony
IE Misde-
□ Plea
□ Trial
Combined Sentence
Consecutive Sentences • Add all consecutive sentences together.
Concurrent Sentences - Enter longest single term. Do not add concurrent. sentences together.
If the sentence is 1 0 years in custod yioMtiyAtg GieifflfjS gwe'S^ft^BpSrded, the
In-Jail term would be 2 years. —
ittach addttjonal/forms If reporting final Judicial process on more than three subjects, and submit a final disposition form (R-84) for each subject. | unn 'OOtZ
le^iarks: / \l . . . , , ' “TTT I ?. O ‘JPE .
/On! 12/21/84 , subject Ellis appeared before U. S. District Judge Malcolm
Muir /and entered a plea to a one-count information charging ITAR -_B r.i berky\
On n27 1 2 / 8 5, subject Ellis was sentenced to two years custody of^ the Attorney
G^^ral, suspended after 30 days, placed on two years’ probation and fined
All couAta-pf a prior indictment were dismissed as to this subject.
2JUN26*
1 - 194-C*“361 (HRA) 1 - OSM 1 - HRA DFJ:kak (5)
Bureau
Field Office •
See codes on reverse side. Subject description codes in Section F are required only when reporting a conviction.
•In Joint operations, identify the other Federal. State or Local Law Enforcement (LE) agency in the Remerks Section.
Code
No
1
2
3
4
5
6
7
8
9
10
11
12
20
Property Type Codes*
Description
Cash (U.S. and foreign currency)
Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
Genera] Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
Heavy Machinery & Equipment (heavy equipment, computers, etc)
Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
Jewelry (including unset precious and semiprecious stones)
Precious' Metals (gold, silver, silverware, platinum, etc)
Art, Antiques or Rare Collections
Dangerous Drugs
Weapons or Explosives
Businesses or Assets Forfeited
All Other Recoveries (not falling in any category above)
Potential Economic Loss Prevented (PELP) Type Codes*
Code
No Description
22 Counterfeit Stocks, Bonds, Currency or Negotiable Instmments
23 Counterfeit or Pirated Sound Recordings or Motion Pictures
24 Bank Theft Scheme Aborted ^3
25 Ransom, Extortion or Bribe Demand Aborted
26 Theft from, or Fraud Against, Government Scheme Aboned
27 Commercial or Industrial Theft Scheme Aborted
30 All Other Potential Economic Loss Prevented (not falling in any
category above)
*The case file must contain an explanation of the computation of the recovery value or loss prevented. An explanation airtel must accompany this
report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
- Enter Description Code Only When Reporting a Conviction -
Organized Crime Subjects:
1 A Boss, Underboss or Consigliere
1 B Capodecina or Soldier
1 C Possible LCN Member or Associate
ID OC Subject Other Than LCN
Union Members:
5A International or National Officer
5B Local Officer
5C Union Employee
Government Officials Or Employees:
Known Criminals (Other Than OC Members):
Federal
State
Local
2A Top Ten or 1.0. Fugitive
6A Presidential Appointee
6J Governor
6R Mayor
2B Top Thief
6B U.S. Senator
6K Lt. Governor
2C Top Con Man
6C U.S. Representative
6L Legislator
6S Legislator
Foreign Nationals:
6D Judge
6M Judge
6T Judge
3A Legal Alien
6E Prosecutor
6N Prosecutor
6U Prosecutor
3B Illegal Alien
6F Law Enforcement Officer
6P Law Enforcement Officer
6V Law Enforcement Officer
3C Foreign Official Without Diplomatic Immunity
3D U.N. Employee Without Diplomatic Immunity
6G Fed Exec - GS 1 3 & above
6H Fed EmpI - GS 1 2 & below
6Q All Others - State
6W All Others - Local
3E Foreign Students
3F All Others
Terrorists:
4 A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
Bank Officers or Employees:
7 A Bank Officer
7B Bank Employee
All Others:
8 A All Other Subjects (not fitting above categories)
*lf a subject can be classified in more than one of the categories, select the most appropriate in the circumstance.
Instructions
Subject Priorities for FBI Arrest or Locates:
A - Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
B - Subjects wanted for crimes involving the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C - All others
Claiming Convictions Other Than Federal:
It is permissible to claim a local (state, county or local) conviction if the FBI’s investigation significantly contributed to the successful local prosecution. A
succinct narrative setting forth the basis for claiming a local conviction must accompany this report. When claiming a conviction other than Federal, enter the
word "LOCAL” in the Conviction-Section" block, disregard the number of conviction counts, but enter the sentence in the appropriate blocks. Enter “LF" in
the "In-Jail" block for all life sentences and "CP” for all capital punishment sentences.
Reporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conviction information can be submitted
by itself if:
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions.
Rule 20 Situations:
The field office that obtained the process (riormally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures.
Investigative Assistance or Techniques (lA/Ts) Used:
-Since more than one lA/T could have contributed to the accomplishment, each lA/T must be rated. <>
-The lA/T used must be rated each time an accomplishment is claimed. (For example ■ if informant information was the basis complaint, an arrest, a
recovery and a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishments, the “Informant'lnformation” block must be
rated on each FD-51 5 even if it was the sat noJofo rmation that contributed to all the accomplishments. )_.^
RECEIVED
TE' EVypE E‘N!T
i
PHO301 10301 3 0Z
PP HQ
DK PH
R \ m\MZ APR 85
m /pHIUOgLEHIA (194C-OS1) CHHA) CP)
TO ^5iRECTOH ^vIORITY
bt ^
U I\’ C L A S
WHITE COLLAR CRIME S ^TI^
R, BUDD ~bW YER ^PRASli aER . GOMMa^'MEAL^ OF PENNSYLVaMa, £T AL|
HOBBS ACT, 00: PHILADELPHIA
RE A5:IL 12, 1985 TELCAL OF SSR/£
ATTENTION;
TO BUREAU
JcORRUPTlON UNIT, WHITE COLLAR CRIME SEdT^^^^
TO date, the PHILADELPHIA DIVISION HAS EXPENDED APPR OX
$4,900 IN THIS investigation UNDER SAC AUTHORITY WITH THE VAST
MAJORITY GOING AS FOLLOWS:
1. THE RENTAL OF COMPUTER EQUIPMENT AND THE PURCfWSE OF '
ffiCESSARY COMPATIBLE HARDWARE AS WELL AS FLOPPY DISC FOR DUPLICATION
OF DISCOVERY MATERIALS PERTAINING TO THE COMPUTER EVlDEiTci SEIZED.
U APR 23 1985
2. RENTAL OF COMPUTER VIDEO DISPLAY EQIPMENT FOR COURTROOM
—3
DISa.AY WHEN COMPUTERS ARE OPERATED DURING THIS TRIAL.
WHITE-COLLAR CRIMES SECTION
ADDENDUM PAGE 3-
m
PAGE TWO, PH 19AC-3S1, U Iv C L A S
3. WITNESS PROTECTION AND SECURITY EXPENSES REGARDING CHIEF
WITNESS JOHN TORQUATO, JR., WHO HAS BEEN IN FEDERAL BUREAU OF
investigation (FBI) CUSTODY SINCE MARCH 24, 1985. IT IS ANTICIPATED
THAT THIS WILL END BY APRIL 19, 1985.
TRIAL IN THIS MATTER COMMENCED IN WILLIAMSPORT, PENNSYLVANIA,
ON MARCH 26, 1985 AND IT IS MOVING VERY SLOWLY. IT IS ANTICIPATED
THAT THE TRIAL WILL LAST ANOTHER THREE TO FOUR WEEKS.
THE BUREAU IS REQUESTED TO AUTHORIZE AN ADDITIONAL $5,000 CASE
EXPENDITURE WHICH WILL BE UTILIZED TO COVER EXPENSES PRESENTLY
being INCURRED AND THOSE WHICH WILL BE FORTHCOMING AS THIS CASE
GOES FORWARD. THE BUREAU WILL BE ADVISED EXPEDITIOUSLY OF THE
OUTCOME OF THIS TRIAL.
BT
# c
ADDENDUM; WHITE-COLLAR CRIMES SECTrON (WCCS) 4/16/85
SAC, Philadelphia, has requested that the case fund
authority be increased by $5,000 to provide additional funds
needed to provide security and subsistence for a witness in
an ongoing trial. The witness is currently on furlough from
a Federal correctional institution. The additional $5,000
would bring the case fund authority to $10,000.
The Public Corruption Unit concurs with Philadelphia's
request.
Director
Ei*C. AD-Adm.
E*ec.A0-lnv.
Emm: ACMXS
Adm.Setva.
Crim.lnw.
fS. .
in5pflCttoo_
Coun.
... - COIQ.
« Public Af{a._
Rec. Mgnt,
Tech. Sefv».
TraininQ
3 *
0-93 (Rev. 4-26-78)
\
DATE
CLASSIFICATION
PRECEDENCE
4/ia/as
UNCLAS E F T 0
ROUTINE
^$F13aiERR PHIDE HQ HD13a IDaPlBUIVEHlR iaiHD3Z APR
as
START HERE
rv
FM
TO
10
DEPARTMENT OF JUSTICE
FEDERAL BUREAU OF INVESTIGATION
COMMUNICATION MESSAGE FORM
a.
Ffl DIRECTOR FBI
TO FBI PHILADELPHIA •Cl'mC-3Ll> ROUTINE
BT
W(i j Uv^er
3
- M " -Tr^
R. BUDDDIilYER-. TREASURER •. ‘COlirfONUEALTH OF PENNSYLVANI-A ■. ET AL-.
HOBBS ACT; 00: PHILADELPHIA IPH}
REFERENCE PHILADELPHIA TELETYPE TO DIRECTOR-. DATED
APRIL la-. nas.
PHILADELPHIA IS AUTHORIZED TO EXPEND AN ADDITIONAL ^SiQDD
/ROM THE CASE FUND AS REQUESTED IN THE REFERENCED TELETYPE.
_BT
I
BO MOT TYPE MESSAOG BELOW THIS ONE
APPROVED BY J
cai
DATE TROOM
M/16/aS 3flMS/b
NR. TUBBS
iq'
ROOM tfiffxt
3flM5/b I
L\ ^ U f
b6
b7C
2 APR 2i i98s
53 jyi
QUREAU OF INVGSTteATfON
eoClHUKlCATIONi) GLrtTEll
NOT FILE WITHOUT COMMUNICATIONS STAMP
BO NOT TYP2 PAST TH!S UNG
FD-36 (Rev. 8-26-82)
cO
<
r
FBI
TRANSMIT VIA:
□ Teletype
n Facsimile
AIRTEL
PRECEDENCE:
□ Immediate
□ Priority
□ Routine
CLASSIFICATION:
□ TOP SECRET
SECRET
CONFIDENTIAL
UNCLAS E F T O
□
□
□
□
""^^ 93/85
Date
UrKECTOR, FBI
(Attention: Laboratory Division— S j
Photographic Unit, Room 3449, SaI
b6 .
b7C
BRIBERY,;
FRAUD
For the information of the Laboratory Division,
Special Photographic Unit, PH is currently involved in a
trial in instant matter which has been underway for 6 we^eks
and will continue for 2 to 3 weeks. One of the main po/lnts
in this trial is a meeting on 3/2/84, involving the subjec:;ts
and Treasurer DWYER at which meeting a bribe offer wasVmade,b6
PH has obtained the appointment book for Treasurer DWjY^ER / b7COB
which reflects the meeting on 3/2/84, at 8:00 a.m, whi c'h. ' ■
entry has been erased. The erased entry is not dif f 4cjud.t to
read; however, the secretary who maintained the bookistates
she is now unable to read the ^nrrv.
the entry reads "BREAKFAST MTG. -| |
| JQHN TORQUATO & | | 7hich was read ‘
unaided , PH requests a photographic enlargement be made of
the area of the appointment book from 8:00 a.m. to 9:00
a.m., 3/2/84. The enlargement should be sufficiently large
to allow the jury as well as the secre tary^t^o/'read the
entry.
be sufficiently large
tary to /read the /D/i
PH requests this enlargement pe handled
expeditiously due to the ongoing trial and the enlargement
and appointment book be sent directly to the HRA, Post
Office Box 312, Harrisburg, Pennsylvania, 17108, as soon as
possible. C .
^7 Bureau ^
2- package copies (Register No. R058822476) ' /f
2- Philadelphia (194C-361 (HRA)
DFJ:der
( 6 ) - 1 -
b6
.b7C
Approved:
4 ^
7
Transmitted
{Number) (Time)
Per
juLuiyyb
PH 194C-361
REQUEST OF THE PBI LABORATORY SPECIAL PHOTOGRAPHIC PHIT
(SPU
The SPU is requested to make the enlargement set
forth above and return the appointment book and enlargement
to the HRA, Post Office Box 312, Harrisburg, Pennsylvania,
REPORT
of the
FEDERAL BUREAU OF IMVESTIGATION
WASHINGTON, D. C. 20535
SAC, Philadelphia (194C-361) (HHA)
1
be r
.b7C
May 15, 1985
Re:
O
R. BUDD BWYERo
PennsylvaniajL,
I, ,,| , ,||M| I I**” ^ ‘
Treasurer of
HOBBS ACT? CONSPIBACY? ITAR -
BRIBERY; MAIL PRAtTD
00 5 Philadelphia
FBI FILE NO. 194-4693
LAB. NO.
50507044 P PH
Examination requested by:
Reference:
Examination requested;
Specimens received
Specimen i
Philadelphia
Cotamunicatlon dated ^3ay Z, 1985
Photographic
May 7, 1985
Q2 Red 1984 Appointmenta booh containing an erased
entry under the date 3/2/84 8i00 A-M*
Result of exacdnatlon s
/ ^
The Q2 specimen was photographed as requested
utilising forensic techniques* As a result of those efforts,
10 (ten) 8 X 10 inch and 4 (four) 11 x 14 inch black and
white enlargements are being furnished.
Being returned under separate cover are Q2# 14
(fourteen) photographic prints and 3 (three) 8 x 10 inch
black and white negatives. , ^ ^ ^
ui .
iddb027 (4)
m
, 2 21 1S85
7-2 ( 5 - 12 - 82 ) '
^0
FEDERAL BUREAU OF INVESTIGATION
UNITED STATES DEPARTMENT OF JUSTICE
Laboratory Work Sheet
FBI FILE NO.
LAB. NO.
YOUR NO.
.b7C-
194-4683;r^^‘-^
50507044 P PN
Re: R. BUDD DWYER, Treasurer of
Pennsylvania;
ET AL;
HOBBS ACT; CONSPIRACY; ITAR
BRIBERY; .MAIL’ FRAUD
Examination by:
00: Philadelphia
Examination requested by: Philadelphia
Reference: Communication dated May '3, 1985
Examination requested; Photographic
Specimens received: May 7, 1985
Specimen:
Q2 Red 1984 Appointments book containing an erased
entry under the date 3/2/84 8:00 A.M.
/o Fx/Oj.
0y\ y
FBI/DOJ
RECORDED
5/8/85
mhh
FEDERAL BUREAU OF INVESTIGATION
UNITED STATES DEPARTMENT OF JUSTICE
Laboratofy Work Sheet
To: SAC, Philadelphia (194C-361) (HRA)
Re: R, BUDD DWYER, Treasurer of
Pennsylvania;
ET AL;
HOBBS ACT; CONSPIRACY; ITAR -
BRIBERY; MAIL FRAUD
00: Philadelphia
Examination requested by: Philadelphia
Reference: Communication dated May 3, 1985
Examination requested: Photographic
Specimens received: May 7, 1985
Specimen:
Q2 Red 1984 Appointments book containing an erased
entry under the date 3/2/84 8:00 A.M*
FBI/DOJ
Viol3tion<5) : , HAFI
l^iolation' date*
Violation location*
Victim*
Subject *
DWYERf R BUDD
Remarks *
BRIBE?MF5
S IE R tC HI
CONSP ITAR
Lab Not 50507044 P
City: PHILADELPHIA^ PA PH.
Form* AT 05- 03-85
Bufile No: 194-A683 -35
Contributors No: 194-361 - C
Status 1
Trial Importance
Ack Type: 7-
Status 2
Doc\Sp Complex
Status 3
Volume Await
Principal Uni
Evid
SFO-
CateSo ry :
Bucled:
1
05-29-85
UC
Examiner < s )
Symbols
Date
Evidence Del v
Date Diet
Ret Date
Partial/Final
DateCs)
b6
b7C —
—
Q
_ K
I terns
Evidence ret:
Resub? NO
Call when ready?
Reouest? NO
EXT
Return No:
Latent? YES
NO
Q tabs? YES NO
Print As
sifinmeiit Card<s
Previous Submission(s) *
41011005 D UE
PHILADELPHIA PA PH
ITEMS
AT 10-05-84
QS
1
KS
Parcel Method and No: RM-R058322476
Received In ECC: 05—07—85
Ol-Boxes
ECCf
RM 4483
RM 3233
RM
RM 3233
'r ^
194C«36i
r
t
REQUEST OF THE FBI LABORATORY SPECIAL PHOTOGRAPHIC UHIT
(SPH
The SPU to requested to nake the eulorgeiacnt set
forth ohove and return the appointaen t book and enlari^ement
to the HRA, Post Office Box 312, Harrisburg* PennGy 1 vania ,
17108*
S
E PH
P 24021 5Z JUH 85
FEDERAL BUREAU
OF INVESTIGATION j
FM SAC, PHILADELPHIA (19AC-360 CHRa) (P) ^
TO DIRECTOR, PRIORITY
BT (V
unclas
R. BUDD
< ’i I • .
! U'L' '■
‘ Cii : . ^
d^R, .JR
IM
OWING
7;-i
I
T REASURER. COt^f ^ ONWEAlTH OF PEN NS YLVANIA";. Z T A^,)
■ - .... <
R-BRIBERY; 00 :PH1LaDKLPHI A
A THREE MONTH TRIAL WHERE OVER 100 WITNESSES WERE
HOBBS AC|
FOLLOWI
called and six days OF JURY DELIBERATION, A JURY IN THE MIDDLE
DISTRICT OF PENNS^VANIa RE TURNED GUILTY VERDICTS ON CALIFORNIA
ATTORNEY, ALLEN STONENAN, FINDING HIM GUILTY OF CONSPIRACY
THEY also found WILLIAM SMITH, CHAIRMAN OF THE DAUPHIN COul^TY
republican COMMITTEE, GUILTY OF CONSPIRACY, ONE COUNT, MAIl\raJjQ,
THREE COUNTS, AND ITaR BRIBERY, FIVE COUNTS.
AS SOON AS POSSIBLE, THE NEXT PHASE IN THIS INVESTIGATION WILL
BE undertaken AND EVERY EFFORT WILL BE MaDE TO GAIN SMITH'S COOPERA
TION SO THAT HE CAN BE USED TO TESTIFY AGAINST HIGH RANKING COMMON-
WEALTH OFFICIALS, MOST OF WHOM TESTIFIED', ON/HIS MHALF, DURING;^'E,
ra JUL 1985
53 OGi 16198&
PAGE TWO, PH 194C-3S1, UNCLAS
TRIAL THAT WAS JUST CONCLUDED, AT WHICH TIME THEY COMMITTED NiTmEROUS
COUNTS OF PuRGERY. THREE OF THE INDIVIDUALS CONVICTED, TO DATE,
TESTIFIED FOR THE GOVERNMENT IN THIS TRIAL.
FBIHQ WILL BE KEPT APPRISED OF SIGNIFICANT DEVELOPMENTS AS
THEY UNFOLD.
BT
ED-51 5 (Revr 2-^7-84)
ACCOMPLISHMENT REPORT (Effective 10/1^
(Submit within 30 days from date of accompiishment)
TO: DIRECTOR, FBI
FROM: SAC,P'
SUBJECT: R. BU:
ET AL;'
HOBBS kci:~£,FO
(00: PH) ,
M
7/31/85
Bureau Fiie Number
Fieid Office File Number
4220
Investigative Assistance or Technique Used
Were any of the investioatiye t
being claimed? Q No u Yes - If Yes. rate each used as follows;
assistaice or techniques listed below used in connection w
h accomplishment
> Used, but did not help
e Helped, but only minimally
joint' operation with
another Federal, State or
Acctg Tech
Assitance
4. Consensual
Monitoring
A. Preliminary Judicial Process
(Number of subjects)
B. Arrests, Locates, Summonses A
Subpoenas (No. of subjects)
FBI Arrests
FBI Locates
Sut^ect Priority (See Reverse)
Number of Subjects of FBi Arrests Who Physicaliy Resisted _
Number of Subjects of FBI Arrests Who Were Armed
Criminal Summons . Subpoenas Served
Helped, 8
jbjgjyjgj
jbstantially
essential
1 6. Show Money
Usage
fl.l . Lab. Div.
FieW Suppor
17. Sutveil.
Sqd Asst
7. Hyp^r
Assistance
12. Pen
Registers
18. SWAT Team
8. Ident^fliM*^
AiSutence
1 3. Photographic
Covered
19. Te
RerJ^ 7 C
9. Informant
Information
14. Polygraph
Assistance
20. Un
_2!b7E
0. Ub Dlv'^'"
1 5. Search Warn
Executed
21 . ViSuCII MIVOOl *
Analysis (VIA)
D. Recoveries, Restitutions, Court'Ordered Forfeitures ^Potential Economic Loss Prevented (PELP)
Property or
PELP Type
Code
~W
Restitutions
Court Ordered Forfeitures
4,341,25(| )
'C. Release of Hostages or Children Locsted: (Number of Hostages or Children
1-,^ Located)
Hostages Held By Terrorists
Missing or Kidnapped Chiidren L
Ji Other Hostage Situations _
E. Civil Matters
Amount of Suit
Settiement or Award
Government Oetendan!
Government Plaintiff
Enter AFA Payment Here
F. Final Judicial Process:
MD I PA
Subject 1 - Name -
WILLIAM
T«^S]!^
Convictions (or Final Judicial Process) Date
7/23/85 & 7/25/85
Sentence Date
TH
Subject's Description Code*-
•Convictions.
Conviction
Enter conviction and
G Misde-
Title
Section
Counts
right. If more than fe(ur
18
371
T
sections ^ involver^fimit to
the four most rele^nt.
G Plea
18
1341S^
3
Do notVepbrt^nviction
until sentence S^heen
0 Trial
18
1952(a)
1
pronounced.^
<#)S2
5
8A
D Pretrial
^ Diversion
.. V I I Dismissal
I □ Acquitta
Combined Sentence
JL2_
JL
^ 63 , QQQ
Consecutive Sentences - Add all consecutive sentences together.
Concurrent Sentences - Enter longest single term. Oo not add concunent sentences together.
If the sentence is 10 years in custody of the Atty Gen. but 8 years are suspended, the
In-Jail term would be 2 years.
Subject 2 - Name -
NEMAN
Subject's Description Code' •
BA_
D Pretrial
Diversiori
I — I Dismissal
D Acquittal
Enter conviction and
sentence data in space at
right. If more than tour
sections are involved, limit to
the tour most relevant.
Oo not report conviction
until sentence has been
pronounced.
Felony
G Misde-
□ Plea
0 Trial
Conviction |
Title
Section
Counts
18
371
1
Combined Sentence
X . ^
In-Jail Term
Suspended
Probation
, ^
Yrs
MOS
Yrs
Mos
Yrs
Mos
TotalFthes''
4
* 10.000
Consecutive Sentences - Add all consecutive sentences together.
Concurrent Sentences - Enter longest single term. Do not add concurrent sentences together.
If the sentence is 10 years in custody oLth'a Att^Gen. but 8 years ^ suspended, the
G Pretrial
I Diversion
I I Dismissal
G Acquittal
-Convictiona-
Enter conviction and
sentence data in space at
right. It more than four
sections are involved, limit to
the four most relevant.
Do not report conviction
until sentence has been
pronounced.
n
1 Conviction I
G Misde-
Title
Section
Counts
G Plea
G Trial
Combined Sentence
In-Jail Term
Suapondod
Probation
Yrs
Mas
Yrs
Mos
Yrs
Mos
Total Fines
1
AUb
S 1395
Consecutive Sentences - Add alt consecutive sentences together.
Concurrent Sentences - Enter longest single term. Do not add concurrent sentences together.
If the sentence is 1 0 years in custody of th&Atty.Qen. but.8,years are. suspended, tl
In-Jail term would be 2 years. ' ’
I Attach additional forms If reporting final judicial process on more than three subjects, and submit a final disposition form (R-fl4) tor each subject. |
Remarks qr 6/24/85, subject WILLIAM T. SMITH was found guilty follg^i^
trial of 1 count of violation of Tl8, Section 371; 3 counts of violat'
Section 1341 & 2; and 5 counts of violation of T18, Sections 1952(a)
7/23/85, USDJ MALCOLM MUIR, MDPA, Williamsport, Penns ylvania, imposed
listed sentences on each guilty count;
\UWA
:»Aea^^ 1^40-361; 1- OSM; 1- HRA RE|L/& DFJ:der (5)
'^^’SeeVodes^n reverse side. Subject description codes in Section F are required only when reportingi^^nvictlon.
"*• ‘In joint operations, identify the other Federal. State or Local Law Enforcement (LE) agency in the Remarks Section.
Property Type Codes*
Code
No Description
1 Cash (U.S. and foreign currency)
2 Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
3 General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
4 Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
5 Heavy Machinery & Equipment (heavy equipment, computers, etc)
6 Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
7 Jewelry (including unset precious and semiprecious stones)
8 Precious Metals (gold, silver, silverware, platinum, etc)
9 Art, Antiques or Rare Collections
1 0 Dangerous Drugs
1 1 Weapons or Explosives
12 Businesses or Assets Forfeited
20 All Other Recoveries (not falling in any category above)
Potential Economic Loss Prevented (PELP) Type Codes*
Code
No Description
22 Counterfeit Stocks, Bonds, Currency or Negotiable Instruments
23 Counterfeit or Pirated Sound Recordings or Motion Pictures
24 Bank Theft Scheme Aborted
25 Ransom, Extortion or Bribe Demand Aborted'’^
26 Theft from, or Fraud Against, Government Scheme Aborted
27 Commercial or Industrial Theft Scheme Aborted
30 All Other Potential Economic Loss Prevented (not falling in any
category above)
‘The case file must contain an explanation of the computation of the recovery value or loss prevented. An explanation airtei must accompany this
report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
- Enter Description Code Only When Reporting a Conviction -
Organized Crime Subjects;
1 A Boss, Underboss or Consigliere
1 B Capodecina or Soldier
1 C Possible LCN Member or Associate
1 D OC Subject Other Than LCN
Union Members:
■ 5A International or National Officer
5B Local Officer
5C Union Employee
Government Officials Or Employees;
Known Criminals (Other Than OC Members):
Federal
State
Local
2A Top Ten or 1.0. Fugitive
6 A Presidential Appointee
6J Governor
6R Mayor
2B Top Thief
6B U.S. Senator
6K Lt. Governor
2C Top Con Man
6C U.S. Representative
6L Legislator
6S Legislator
Foreign Nationals:
6D Judge
6M Judge
6T Judge
3A Legal Alien
6E Prosecutor
6N Prosecutor
6U Prosecutor
3B Illegal Alien
6F Law Enforcement Officer
6P Law Enforcement Officer
6V Law Enforcement Officer
3C Foreign Official Without Diplomatic Immunity
3D U N. Employee Without Diplomatic Immunity
6G Fed Exec - GS 1 3 & above
6H Fed EmpI - GS 1 2 & below
6Q All Others - State
6W All Others ■ Local
3E Foreign Students
3F All Others
Terrorists:
4 A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
Bank Officers or Employees:
7 A Bank Officer
7B Bank Employee
All Others:
8 A All Other Subjects (not fitting above categories)
‘If a subject can be classified in more than one of the categories, select the most appropriate in the circumstance.
Subject Priorities for FBI Arrest or Locates:
A - Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
B - Subjects wanted for crimes involving the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C - All others s'.
Claiming Convictions Other Than Federal:
It is permissible to claim a local (state, county or local) conviction if the FBI's investigation significantly contributed to the successful local prosecution. A
succinct narrative setting forth the basis for claiming a local conviction must accompany this|.*report. When claiming a conviction other than Federal, enter the
word “LOCAL” in the Conviction-Section” block, disregard the number of conviction counts, but enter the sentence in the appropriate blocks. Enter “LF” in
the "In-Jail” block for all life sentences and “CP" for all capital punishment sentences.
Reporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The convictidb information can be submitted
by itself if:
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions. ' *
Rule 20 Situations:
The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures.
Investigative Assistance or Techniques (lA/Ts) Used:
-Since more than one lA/T could have contributed to the accomplishment, each lA/T must be rated.
•The lA/T used must be rated each time an accomplishment is claimed. (For example - if informant information was the basis for a complaint, an arrest, a
recovery and a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishments, the “Informant Information" Block must be
rated on each FD-51 5 even if it was the sa^^jiformation that contributed to all the accomplishments.L
PH 194C-361
Count 1-5 years and $10,000 fine
Count II - 5 years and $1,000 fine
Count III - 2 years and $1,000 fine
Count VII - 5 years and $1,000 fine
Count IX - 5 years and $10,000 fine
Count XII - 5 years and $10,000 fine
Count XIII - 5 years and $10,000 fine
Count XIV - 5 years and $10,000 fine
Count XV - 2 years and $10,000 fine
The prison time on Counts I, II and III is to be
served consecutively. The time imposed on all other counts
is to be served concurrently.
On 6/24/85, subject ALAN R. STONEMAN was found guilty
following a jury trial of 1 count of violation of T18, Section
371, use.
On 7/25/85, USDJ MALCOLM MUIR, MDPA, Williamsport,
Pennsylvania, imposed a sentence of 4 months custody of the
Attorney General and a $10,000 fine.
The potential economic loss prevented is the
difference between the cost of a contract obtained through
bribery and a subsequent contract for the same work let through
the bidding process.
- 2 *-
j >55 165
231620Z: AUG ^5
W PITTSBURGH ( 194 C-267) (P)
TO DIRECrO^^^IORnY
uuuhi' UD
.'rr LJj-iij
'■ -M^uoC Gj Mz
OF i.vvcSvfUMnoN /
ATTE^TIO^’5 UHITE COLLAR CRIME SF(^IOW, PUBLIC OORRUPTIOM UMIT ,
—
R. PLDl^^‘i YE^ , T HBASIREP O F m^aYL-UAIilA ; FT .AL , HOBBS ACT ,
CONSPIRACY? ITAR - BR IBER Y ? COO; PHILADELPHIA)
r
RE PPT EL CAL TO B UREA IJ , AUG USX 2? , 19 85 .
FOR INFORMATION OF BUREAU, PITTSB LF?G H D I VISJo jc CUPRE^’TL Y
OOUDUCTI^^^ AN IWFSTIGATIOM IN THIS MATTER RELAX I^X? TO PAYO FFS BY
JOH^^ TOR OUATO , JR . , 0 F CT A , INC. , TO
PITTSBLBGH
I I PAYOFF ALLEGEDLY MADE IN RFTURN FOR I
ASSISTANCE TO TOP OUATO IN OBTAINING TAX RECOVERY CONTPACT FRO^^ CITY
OF PITT SB UPGH. /^//^ I 9 ^ ^ ^
3-?7
TO° OUATO PREVIOUSLY FLED GUILTY TO ^AIL FBAUB ATO ITAP CHA RGERS
PELATIt-’G TO HI? ATTEMPTS TO OBTAIN SIMILAR OD.F’TRACTS IN KAR^ ISPURP ,
^ SEP •’ 13
i
PAeE TV50 pp 194C-267 l^^'aAP
m, A^D APF^APED AS A ^aT^!ESS FOR PHILADSLPHIA DIVISION IN TRIAL OF
TMn nr utc m -rn mc-ptp ^rnp q tm qp^TN^-:
tQRS. UTI! TA^-fSPnPT. PA.
b6
-b7C
DISTRICT OF PENMSWLANIA C'-DPA), PITTSBURGH, PA, HAS ADVISED THIS
PATTER IS SCHEDLLED FOR FFDERAL GRATT) JURY (FGJ) IN PITTSBIRGH, FA,
SEPTEPPE^ 4-5, I9S5,A® IT HILL BE APSOLUTELY ^'ECESSARY FG^
TORPUATO TO APPEAR BEFORE FGJ AS HIT^TSS ON THOSE DATES.
TOROUATO, AS A RESULT OF HiS H.EA AGRFEM£^r^ , WAS SE^^TE^CED TO
FOL^ YEARS lEPR I SO , WHICH HE IS CURRECTLY SERVING AT BOROK
FEDERAL PRISON CANP, BORON, CA.^TOPOUATO IS DESCRIBED AS ’-’vjttf
MALE , DOb | ] POP HARRISBURG', PA, HEIGHT 6M”,
HEISW 172 POUMDS, HAIR BROWN, EYES HAZEL^^
IN VIEW OF TOROUATCTLS- .^ATUS AS FEDERAL , IT IS U^'tiEP-
9*000 TFAT FBI HILL ASSUME CUSTODY OF HIM AKID MAIf'TAIN HIM IN A
GUARDED COFLITION THROUGHOUT THE DUt^-ATIOMOF HIS FGJ APPEARANCE.
I I HAS ADVISED THAT IT HILL BE NECESSARY TO HAVE TOR PLIATO
IN PITTSBIPGH BY SEPTEMBER 3, 1985, AM) HIS PRESENCE IS EXPECIFD TO
BE WE CESSAR Y THROUGH SEPTEMBER 6, 19S5.
IT IS NOTED NO PR ISON PEDESIG NAT ION H ILL BE ^^CESSAPY FOLLOWING
TOHOUATO’S TESTINOMY BEFORE T I-E FGJ . .
EF
#
I
HP H.S ACK FOR R
PH 00I2242005Z
00 HQ
DE PH
>122Q05Z AUG IT
ATTENTI(^:
* £u £ij
FEP,cB Ai,,
i:.
FM PHILADELPHIA (1940-361)
TO ( Di;^E^Og::)tM[vl£DIATE
BT
U N C L A S
WHITE COLLAR CRIMES SECTION
H. BUDD DV/y£R, TREaSU^R . . COMMONWEALTH OF PENNSY LVANI A;.,ET AL
HOBBS ACTj^'^iS: PH
UR£K. UOnnOWWEALTH Ul
6wc/(/^D^y^<
SET FORTH BELOW IS A SUMMARY OF THE PROSECUTIVE ACTION
COMPLETED IN THIS CASE AS OF THIS DATE;
11 ? N0V201985
# %
PAGE TWO, PH 1940.361, UNCLAS
YEAR CUSTODY OF THE ATTORNEY GENERAL AND FINED $10,000.
2. JOHN R. TORQUATOt^JR., ON DECEMBER 17, 1984, ENTERED
PLEA OF GUILTY* TO 1 COUNT OF CONSPIRACY AND AGREED TO COOPERATE
WITH THE GOVERNMENT. ON FEBRUARY 8, 1985, TORQUATO WAS SENTENCED
TO FOUR YEARS CUSTODY OF THE ATTORNEY GENERAL AND FINED $10,000.
3. MBT TH aNN E1. L.LS-_0N DECEE'IBER 21 , 1984, ENTERED A PLEA
OF GUILTY TO A 1 COUNT INFORMATION CHARGING ITAR-BRIBERY AND
AGREED TO. 'COOPERATE WITH THE GOVERNMENT. ON FEBRUARY 12, 1955,
ELLIS was sentenced TO 2 YEaRS CUSTODY OF THE ATTORNEY GENERaL,
SUSPENDED after 30 DAYS, PLACED ON 2 YEARS PROBATION AND FINED
$5,000.
4 . ALAN R. S TONEMAN, ON JUNE 2“*, 1985, FOLLOWING A JURY
TRIAL, WAS FOUND GUILTY~OF~p COUNT OF CONSPIRACY. ON JULY 25,
1985, STONEMAN WAS SENTENCED TO 4 MONTHS CUSTODY OF THE ATTORNEY
general and FINED $10,000.
5. -M-U-J -LAM. T- SMITH, ON .I IINF 2^, 1985, FOLLOWING A JU»X .
\
TRIAL, WAS FOUND GUILTY OM 1 COUNT OF CONSPIRACY, 3 COUNTS OF ■
mail fraud and 5 COUNTS OF ITAR. ON JULY 23, 19^85, SMITH-WA?
SENTENCED TO 12 YEARS CUSTODY OF ATTORNEY GENERAL AND FINED
$S3,000,
# •
PAGE THREE, PH 19AC-361 , UNCLAS
THE FGJ IS PRESENTLY TAKING TESTIMONY IN PHASE II OF THIS
investigation concentrating oh evidence
PURPOSES AND PHILADELPHIA WILL ADVISE IS FURTHER DEVELOPMENTS
ARISE. ,,
BT
FD-515 {Rev. 2-27-84)
^tcOMPLISHMENT REPORT (Effective 10
(Submit within 30 days from date of accomplishment)
TO: DIRECTOR, FBI
^SAC,/RIJTSBURGH (P)
sfejEci^
R. ^UDD^WYERT^'TR^'^^URERir^
COMMONWEA LTH OF PENNS YL ^ZAN.I A f
et"^ r
HOBBS ACT - CONSPIRACY;
ITAR - BRIBERY; C
MAIL FRAUD
(00: PHILADELPHIA)
Bureau File Number
194C-267~
Field Office File Number
4216
Souad or RfV Number
Date
Irivestigative Assistance or Technique Used
Were any of the Investigative assistance or techniques listed below used In co
being Claimed? □ No □ Yes • If Yes, rate each used as follows:
1 = Used, but did not help 1'
2 = Helped, but only minimally
3 = Helped, substantially ;
4 = Absolutely essential » ■
8/16/85
I— 1 X if a joint opeTalion with
another Federal, State or
Local LS^luncy * *
@ Xvf^sILcwolves
, t _ ccV>ptiA of a public
JJQ«wStFOT6ral, State or
Complaints
Informations
Indictments
Subject Priority (See Reverse) [
A
B
C
T . Acctg Tech
Assistance
J. Aircraft ~
Assistance
3. Computer
Assistance
4. Consensual
Monitoring
5. ELSUR-
FISC
Rating 6. ELSUR -
Title III
7. Hypnosis
Assistance
8. Idem Div
Assistance
9. Informant
Information
3 1 1 . Lab. Div, R
Field Support
' ”12. Pen
Registers
1 3. Photographic
Coverage
14. Polygraph
Assistance
15. Search Warrants
Executed
16. Show Money Rating
' Usage
^tlng 17, SuJ^ g
19. Telephone Toll
Records
20. Undercover
Operation
21. Visual Invest •
Analysis (VIA)
A. Preliminary Judicial Process
(Number of subjects)
B. Arrests, Locates, Summonses A
Subpoenas (No. of subjects)
, Number of Subjects of FBI Arrests Who Physically Resisted
Number of Subjects of FBI Arrests Who Were Anned
Criminal Summons Subpoenas Served ^
C. Retasse of Hostages or Children Located: (Number of Hostages or Children
Hoslagee Held By Terrorists
Missing or Kidnaped Children Located _
F. Final Judicial Procsss: Judicial D
Subject 1 - Name -
I □ Pretrial Tl
Alt Other Hostage Situations _
0. RecoverIss, Raatltutions, Court Ordered Forfeitures or Potentle
Property or
PELP Type
Code Recoveries Restitutions
Economic Loss Prevented (PELP)
Potential E^omic
Court Ordered Forfeitures LoSsP^edented
S
$
$
/ ’
$
$
$
$
$
$
$
$
$
s
S
$
$
s
$
E. Civil Matten
Government Defendant | Go
remment Plaintiff
$
1$
Settlement or Award
$
$
Enter AFA Payment Here
Convictions (or Final Judicial Process) Date
Enter conviction and
sentence data In space at l_l Misde-
fight. If more than four
sections invoNed, limit to
the four most. relevant.
Do not report conviction CD Trial
until senterice has been
pronounced.
U Pretrial
Diversion
LJ Dismissal
G Acquittal
Q Pretrial
Diversion
U Dismissal
□ Acquittal
l-J Pretrial
Diversion
G Dismissal
G Acquittal
I Attach additional forms H reporting final Judicial pro cess 01
Remarks:
Subject's Description Code*-
Combined Sentence
In-Jall Term
"Yrs n Mos
Consecutive Sentences ■ Add all consecutive sentences logether.y^
Concurrent Sentences - Enter longest single term. Do rtrt add concurrent sentences together.
If the sentence is 10 years in custody of the Atty Gen. but 8 years are suspended, the
In-Jail term would be 2 years. / i |
-Convictions-
Q Felon
Conviction | {
Entof conviction and
Title
Section
Counts
sentence data in space at
right. If more than four
G Misde-
—
aections are involved, limit to
the tour most relevant.
G Plea
Do not report conviction
until sentence has been
Q Trial
pronounced.
-Convictions-
Q Felony
Convietton ],
Enter conviction and
Title
Section
Counts'^* ■
sentence data In space at
tvgM. It more than tour
l—l Misde-
sections are involved, limit to
the four most relevant.
Q Plea
Do not report conviction
ufrtil sentence has been
G Trial
In-Jall Term
Yrs f Mos
Subject’s Descriptioh^od^eJ^ j
Combined Sentd^j / "
Suspended ! Proballoo-^ j
ore than three subjects, and subml
Consecutive Sentences - Add all consecutive sentences together.
Concurrent Sentences - Enter longest single tenri. Do not add concurrent •'(gether.
If the sentence is 1 0 years in custody of the Atty Gen. but 8 years oiIq ^ , the
In-Jail term would be 2 years.
— = — — ■ ■ ■ ■ — -^7^
Subject’s Description Code' -
^ Combined Sentence ^
i/Sjsin^rS Suspended j Probation
Consecutive Sentences -Add all consecutive sentences together. /
Concurrent' Sentences - Enter longest single tern. Do not add concurrent sentences together.
If the sentence is 10 years in custody of the Atty Gen.-but'S years are suspended, the
In-Jait term would be 2 years. ' — ~
position form (R-«4) for each subject I ^
Service of one (1) subpoena claimed, as same served'-w-i-thi'n^the
Pittsburgh Division, Greensb ura Resident Agency , for the Philadelphia
Division. Subpoena served orj | vO
Division. Subpoena served o
( l”Philadelphia)
Q^ir^.e (1“SSS)
■See codes on reverse side. Subject description codes in Sectiot
* ‘ In joint operations, identify the other Federal, Stale or Local Law
DGN/jar
Code
No Description
1 Cash (U.S. and foreign currency)
2 Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
3 General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
4 Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
5 Heavy Machinery & Equipment (heavy equipment, computers, etc)
6 Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
7 Jewelry (including unset precious and semiprecious stones)
' 0 Precious Metals (gold, silver, silverware, platinum, etc)
9 Art, Antiques or Rare Collections
• 10 Dangerous Drugs
' 1 1 Weapons or Explosives
1 2 Businesses or Assets Forfeited
20 All Other Recoveries (not falling in any category above)
Potential Economic Loss Prevented (PELP) Type
ft? o' /
Code - ^ -
No Description >
CO <
22 Counterfeit Stocks, Bonds, Currency or Negotiable Instruments
23 Counterfeit or Pirated Sound Recordings or Motion Pictures
24 Bank Theft Scheme Aborted ^ ' •
25 Ransom, Extortion or Bribe Demand Aborted
26 Theft from, or Fraud Against, Government Scheme Aborted
27 Commercial or Industrial Theft Scheme Aborted
All Other Potential Economic Loss Prevented (not falling in any
category above)
•The case file must contain an explanation of the computation of the recovery value or loss prevented. An explanation airtel must accompany this
report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
^ • Enter Description Code Only When Reporting a Conviction -
Organized Crime Subjects:
1 A Boss, Underboss or Consigliere
1 B Capodecina or Soldier
1C Possible LCN Member or Associate
ID OC Subject Other Than LCN
Union Members:
5A International or National Officer
5B Local Officer
5C Union Employee
Government Officials Or Employees:
Known Criminals (Other Than OC Members):
Federal
State
Local
2A Top Ten or 1.0. Fugitive
6A Presidential Appointee
6J Governor
6R Mayor
2B Top Thief
6B U.S. Senator
6K Lt. Governor
2C Top Con Man
6C U.S. Representative
6L Legislator
6S Legislator
Foreign Nationals:
6D Judge
6M Judge
6T Judge
3A Legal Aliert
6E Prosecutor
6N Prosecutor
6U Prosecutor
3B Illegal Alien
6F Law Enforcement Officer
6P Law Enforcement Officer
6V Law Enforcement Officer
3C Foreign Official Without Diplomatic Immunity
3D U.N. Employee Without Diplomatic Immunity
6G Fed Exec - GS 1 3 & above
6H Fed EmpI - GS 12 & below
6Q All Others - State
6W AH Others - Local
3E Foreign Students
3F All Others
Terrorists;
4A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
Bank Officers or Employees:
7A Bank Officer
7B Bank Employee
All Others;
8A All Other Subjects (not fitting above categories)
•If a subject can be classified in more than one of the categories, select the most appropriate in the circumstance.
Instructions
Subject Priorities for FBI Arrest or Locates:
A • Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
B - Subjects wanted for crimes involving the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C • All others
Claiming Convictions Other Than Federal;
It is permissible to claim a local (state, county or local) conviction if the FBI's investigation significantly contributed to the successful local prosecution. A
succinct narrative setting forth the basis for claiming a local conviction must accompany this report. When claiming a conviction other than Federal, enter the
word “LOCAL” in the Conviction-Section” block, disregard the number of conviction counts, but enter the sentence in the appropriate blocks. Enter "LF” in
the ‘‘In-Jail” block for all life sentences and “CP” for all capital punishment sentences. ^
Reporting Convictions;
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conviction information can be submitted
by itself if;
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions.
Rule 20 Situations;
The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures.
Investigative Assistance or Techniques (lA/Ts) Used: i
-Since more than one lA/T could have contributed to the accomplishment, each iA/T must be rated.
•The lA/T used must be rated each time an accomplishment is claimed. (For example ■ if informant information was the basis for a complaint, an arrest, a
recovery and a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishments, the “informant Information” block must be
rated on each FD-51 5 even if it was the same information that contributed to ail the accomplishments.)
% f
GPO : 1984 O - 458-870
FD-36 (Rev. 8-26- 82g
/ "
TRANSMIT VIA:
□ Teletype
□ Facsimile
"TBI ^
PREJ^EDENCE:
□ Immediate
□ Priority
Q Routine
GLASSIFICATION:
□ TOP SECRET
SECRET
CONFIDENTIAL
UNCLAS E F T O
UNCLAS
Date 9/5/85
□
□
□
□
JAN 1 6 1986
DIRECTOR, FBI
(Atterrtion: FBI Laboratory, Photo Processing Unit)
PHILADELPHIA ( 1 94C-36 1 ) ( HRA ) ( P )
SUBJECT R. BUP ri
ET AL;
HOBBS ACT; MF; ITAR
(00: PHILADELPHIA)
j
Enclosed for the FBI Laboratory are 17 negatives
suitable for processing.
For the information of the Bureau, the enclosed
negatives are photographs taken of computer printout spread
sheets obtained bv search warrant in captioned matter . Acting
I I MDPA. Harrisburg, Pennsylvania, anticipates
introduction of these spread sheets into evidence in upcoming
trial .
b6
b7C
REQUEST OF THE FBI LABORATORY
The Photo Processing Unit is requested to develop »
enclosed negatives, enlarge to poster size, mount on stiff,- ’f* )
durable material and cover with acetate. ^ ‘
Any questions pnncerning nr»p>narp t.i on /^-p -i f wTp
should be directed to SA l I or SiJ |
bf the Harrisburg, Pennsylvania, RA, PH Division, FTS
QM- Bureau
1- Package Copy (Enc. 1 7 ) ( RM#RO590973 1 0 )
2- Philadelphia ( 196C-361) (HRA)
REB : der
f()6)
- 1 *-
Approved: _
K
Transmitted
Per
SM
^~3C)-S’G
(Number)
(Time)
PGO 012284 1553Z
RR Hg
received
TELETYPE
mn ^
lOnI! 16 111;
R- 1 1 1553Z OCT 85 / . • • - .
X F^g ^
FM PITTSBURGH ( l94C-Zj^) (?) t).S. DEPT. qfTjUo
TO DIRECTOR ROuTIfJ^
hNCLaS * ■
jWHITE collar crime section, PfBLIC CORRUPTION \j^U
nl- BjiDE^ DWYE fi. treasurer OF PENNSYLVANIA; ET aL; H033S ACT^ife; , ,,'1
CONSPIRACY; ITaR-BR IBER Y; MF; (00; PHILADELPHIA) • V.^;.
, - * rr-^
RE PG TT TO'Bu, AljGuST 22 , 1985.
FOR INFORMATION OF Bu, ON OCTOBER i0, 1985, FGJ, WDPa, PITTSBURG
INVESTIGATION CONTINUING IN PG DIVISION,
1980 '.
FD-523 (Rev, 9-9-82)
Director, FBI
(Attn: Photographic Processing Unit, Rm. 1B903)
SAC PHILADELPHIA (194C-361) (HKA) (P)
JAN 1 6 i
Subject: R. B0DD DWYER; ;
ET AL;
HOBBS ACT; MP; ITAR
(00s PHILADELPHIA)
ft.
1. ENCLOSED PHOTOGRAPHIC WORK RELATES TO;
D Current Investigation □ Mug Shot □ Other
2. ENCLOSURE(S)
FBIHQ USE ONLY
Initials
Received
Date
Develnperi
Enlargements
Slides
Copied
Other
Size
O
o
saw
Quantity
4x5
135
126
120
Slides
1
Size
Color
Baw
Quantity
16mm
35mm
6(super)
70mm
AHU
1
r ~
1
Size
Color
saw
Quantity
8x10
4x5
135
'
120
126
220
110
! '
!
Item
Quantity
3. WORK REQUESTED
Processing
□ Process only
□ Process & make print
D Process & make contact print
D Slides to be processed
□ Slides to be di^licated
□
□
4. PROCESSING CENTER
REMARKS
Prints To Be Made
(From 135. 126, and 110)
□ 3y2x6 □ 5x7
# prints from each frame
a Color Q saw
(From 1 20 and 4x5)
□ 4x5 □ 8x10
# prints from each frame
□ Color □ BaW
Prints To Be Made Custom Prints
(Prints from slides) (From any size negative or slide)
□ 372X5 Quantity
□ 5x7 ' Size
□ 8x10 □ Color □ saw
MOT RECORDED
'*51 C
^PECIAL INSTRUCTIONS
^ Mail Room: Show shipment date and registry number.
Q Shipping Room: Shovy shipment date; bill of lading
number, initial invojt^invoice to be placed in
administrative filp^; ^
INSTRUCTIONS
^QENERAL ^ v . . V
' All photographic work most be submitted under the substantive case caption when it relates to an investigative ^
matter. Include FBIHQ file number when available. All other photographic processing forms (including FD'482) are i
obsolete and should not be used. The FD*523 is to be utilized for all photographic processing work forwarded to FBIHQ
except employee identification and/or credential cards. Requests for official FBI identification and credential cahte must be
submitted or^ form FD-464, Attention: Property Procurement and Management Section.
nn' ^
The FD-523 may be filled out in legible hand printing or typing so that all six pages^n, be, reap. . The following
information is set forth to assist in properly filling out this form. Remove third sheet only (yelfow-field copy) .andaubmit the
remaining five pages.
1. ENCLOSED PHOTOGRAPHIC WORK RELATES TO:
. All photographic work submitted should be' checked as Current investigation. Mug Shot, or OTHER in
appropriate block. If “OTHER” is checked si shorf description of what it is should be stated under item #4 (Remarks).
2. EWCLOSURE(S): ' '
•i - ' FIIitj To Rc Procosaod - Check appropriate column for Color, Black and White ‘film, alongside the size of the
film. . Also, indicate the number of sheets or rolls or cassettes in the quantity column. Slides refer to EKTACHROinE
ONLY, DO .WOT SEND KODACHROiyiS.
R/IovId Film Or IWIcrofllm - Check appropriate block for size and quantity. DO MOT SEND COLOR fWOt/fE
F1LW1.
Npgatlvoa To Bo Printed - Check appropriate block for size; Color or Black and White and quantity sut mitted.
If 135mm negatives are to be printed, indicate by frame number, do not cut up into Individual frames. The same applies to
any roll film, ' .......
Other - Enclosures to be copied e.g. photographs, do'curnents, objects, etc.
' ' ~
3. WORK REQliESTED: ; , " ‘ ; '
- Processing - Only nrieans to develop'lhe^lnrrand NO COPIES or PRINTS e.g. microfilm.
... Process and Print - Means to develop film and rnake ope or more prints. i ^
> Slides To Bo Processed - Means Ektachrome film tq be'^developed and -slides mounted. - ■
Slides To Be Duplicated - Means process slide film and mak&one or more duplicates of each slide. -
•Prints To Be Made -From 135, '126 and lid. film, check sfze 3’/2x5 or 6x7. These are the only size prints
available from our machine printers. Check Color or Black and White*. - - -
From 120 and 4x5 Film - Check size 4x5 or 8x10 and indicate Color or Black and White. These are the only
size prints available from our machine printers.
. , , Slides ■ Prints made directly .from slides. Machine prints can be made In sizes 314x5, 5x7 and-8x1C.
Qustom prints - From any size.negative dr slide; indicate quantity' and size of prints either Color or Black and
White. Custorri prints are available in various sizes but require extensive special. handling. This type of printing is done on
special request and proper justification must bejurnished under item #4 (Remarks). -
4. REMARKS: ....
• . Justification for custom prints. Any special instruction or short description of “other” photographic work in
item#1 of this form. '
No Personal Work should be submitted for processing. Any requests which 'may be'mlsinterpreted as
personal in nature should be explained and approval granted by the Special Agent in Charge or hlsJ^her .designee.
FD-523(Rev. 9-9-82)
Director, FBI
.(Attn; Photographic Processing Unit, Rm
SIDE
AIRTEV
Date:
'JAM i 6 )386 '
SAC PHILADELPHIA (194C-361) (HRA) (P)
R. BUDD^WYE R;^
■^ET AL;
HOBBS ACT? MF; ITAR
(00: PHILADELPHIA)
1. ENCLOSED PHOTOGRAPHIC WORK RELATES TO:
□ Current Investigation □ Mug Shot □ Other
FBIHQ USE ONLY
Initials
Received
Developed
Printed
Enlargements
Slides
Copied
Other
2. ENCLOSURE(S)
Film To Be Processed
Size
Color
B&W
Quantity
4x5
135
126
120
Slides
3. WORK REQUESTED
Movie Film or Microfilm
Size
Color
B&W
Quantity
16mm
35mm
8(super)
70mm
AHU
r"’
Negatives To Be Printed Other
Item
Quantity
Size
Color
B&W
Quantity
8x10
4x5
135
120
126
1
220
110
Processing
□ Process only
□ Process & make print
□ Process & make contact print
□ Slides to be processed
□ Slides to be duplicated
□
□ L.
4. REMARKS
(include trial date or other
mandatory deadline and £Uiy
other specific instructions)
FBIHQ Enclosure
Prints To Be Made
(From 135, 126, and 1 10)
□ 3/2x5 □ 5x7
# prints from each frame
□ Color □ B&W
(From 1 20 and 4x5)
a 4x5 □ 8x10
# prints from each frame
□ Color □ B&W
Prints To Be Made
(Prints from slides)
n 3/2x5
□ 5x7
□ 8x10
Custom Prints
(From any size negative or slide)
Quantity
Size
□ Color □ B&W
jf/f ^ -
Fllmrec'
to.
Inll/da;a < ]
S^OT RECORDfc.D j
Icc retained In Rm iB903^yiyi- —
1 letter each sent to ' / /
Ack: SPS, LAB
Work Completed:
Filrriprocess9d_
Prints made
Slides made
im
•<3C dUN 10 jo6
s2>/i
/-SO'B-fe
ACCOMPLISHMENT REPORT
(EHective 10/1/85)
{Sobmtt within 30 days from data of accomptehment)
DIRECTOR. FBI
FROM: sac; PITTSBURGH
SUBJECT: .-j
R» BUDD^DWYE R, TREASURER
OF __P ENNSYLVANIA ;
ET a’L;
HOBBS ACT-CONSPIRACY;
ITAR-BRIBERY; MF
(00: PHILADELPHIA)
_ 15 _
Squwa Of Nunxbaf
10/28/85
X if a )oin1 oparation with;
(identlly of othaf eg^
Xif caaaiB
knocUgatfva Asaiatanee or Tochnfquo Usod
War* any of the inveatlsitlva a^taica or tochniquaa Ustad below used In connoctlan with accomplish-
mant being daknad? LJ No LJ Yea - If Yea, rata each used aa folows:
1 - Uaad. but did not he^ 3 * Halpad. aubatanttaVy
2 B Halpad. but only mInJmaly 4 m Abaolutaly aaaantial
1 . Acetg Tech RaDng
Aaslatanca
8. Eng. Sect. Rating
Tapo Exams
1 5. Photographic Rating
Coverage
2>^7%lephona Rating
^ Toll Rees
2. Aircraft
9. Hypnosis
te. Polygraph
23. UCO
Assistance
Asslatanoa
Assistance
Group 1
3 Computer
10. IdantDIv
1 7. Search Warrants
24. UCO
Aasistanca
Aaslatanca
Executad
<3roup II
4. Consensual
1 1 . Informant
1 8. Show Money
25, UC
Monitoring
Information
Uaaga
Other
5. ELSUR -
12. Lab DIv
19. Survelt. Sqd.
20. NCAVC/
FISC
Exams
(SOG) Aast
VI-CAP
e. ELSUR -
13. Lab DIv
20. SWAT Team
27. Visual Invest -
TWO III
FMd Support
Action
Analysis (VIA)
7. Eng. Sect.
Field Support
14. Pen
Ragiatara
21. Tech. Agl. or
Tech Equip
A. PraHffllnanr Aidlclal Precaaa
IB. Arraata, Locataa, Svmmonaas or Subpoanaa Sanrad (No. of Sub).}
Subject Priority '
A
B
C
FBI Arrests -
Served
FBI Locates -
CrImirtN
Local Arrests •
FBISubj Raaialad,
RaatHutlona, of Potanllal Economic Loaa Pravontod (PELP)
(Explain valuation In ramafta)
Proparty
Typo
Coda*
PELP
Type
Code*
f.)lJ
Government Defendant
Oovamment Plaintiff
$
$
$
$
Enter AFA Payment Hare
|C. Wala a aa of HoattQaa or ChUdran Located: (Number of Hoatapea or
il Othar Hostage Sttuationa _
Hoategas Held By Tefrortata ; /
Mla a i n g or Kidrtaped ChMran Located _
E. Chrl) Matters
Amount of Suit
Sattlamani or Award
F. Final Judicial Procaas:
Conviction or Pretrial Oiv. Date
Tb6
Subject OasertpSon Code* —
Subject 3 Subject Description Code*—
Acquitted ^ ^ missed
^b7c:
D Fatony
□ Misde-
rrtaanor
Conviction
Combined Sentence
D Felony
D Misde-
meerxrr
Conviction
Combtned Sentence |
Title
Section
Counts
In-Jalt
Yrs 1 Mos
Suspended
Yrs I Mos
Probation
Yrs 1 Mos
Title
Section
Counts
In-Jail
Yrs I M0S>
^Suwnded '^Probation
''^Yrs 1 Mos Yrs''! Mos
__1_
_
1 /
1 " 1^'"'“^
1 ill
□ □□
Total ,
Fines *
i ill
□ □□
^^ss/ )
Add consecutive sentences together.
Enter longest single concurrent sentence.
Do not add concurrent sentences together.
Sentence l0yra.-8 yrs. susp « 2 yrs. In-Jail.
Add consecutive 8ent^ce^^etl^r,.;f ^ ^
Enter longest single clrncorrenl sentence. jT
Do no( add coneurrertt sentence's lo*gefh^>^
Sentence ’to yrs. -8 ^s, susp' « 2 yrs:'1n-Jail.
1 Subject 2 Sut^t Oascripfion Code* -
Subjects Sut^ct Description Code*— ]
□ Felony
n Misde-
maarror
Conviction
Combined Sentence
□ Felony
□ Misde-
moanof
Conviction
Combtned Sentence I
Title
Section
Counts
In-Jail
Yrs 1 Mos
Suspended
Yrs 1 Mos
Prob
Yrs
ation
Mos
Trtle
Section
Counts
In-Jail
Yrs I Mos
Suspended
Yrs 1 Mos
Probation
Yrs I Mos
I
1
□ Plea
D Trial
C] Pretrial
Diversion
Total ,
Fines *
D Plea
D Trial
Q Pretrial
Diversion
Totst ,
Fines •
Add consecutive sentences together.
Enter longest single concurrent sentence.
Do not add concurrent sentences together.
Sentence 10 yrs -8 yrs susp. » 2 yrs. In-Jait
Add consecutive sentences togetner.
Enter longest single concurrent sentence.
Do not.add concurrent sentences together.
Sentence 10 yrs. -8 yrs. susp. = 2 yrs. In-Jail.
□
_
(For every subject
^GJ
I Attach addh ional forms If reporting Hnal judicial process on more than tour subjects, and su bmt^mn al disposition for (B-<4) for ^ach subject 1/ / Ai'
jbject reported in Sections A, B or F above, provide name, DOB race*, sex. and POB and
WDPA. Pittsburgh, PA, returned! I
0 Bureau
Field Office (1“SSS)
* See codes on reverse side
Coda
No Daacriptlon
Proparty Typa Codaa*
Cash (U.S. and foreign currency)
Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
Heavy Machinery & Equipment (heavy equipment, computers, etc)
Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
Jewelry (including unset precious and semiprecious stones)
Precious Metals (gold, silver, silverware, platinum, etc)
Art, Antiques or Rare Collections
Weapons or Explosives
All Other Recoveries (not falling in any category above)
Potential Economic Loss Prevented (PELP) Type Codes*
Code
No Description
22 Counterfeit Stocks, Bonds, Currency or Negd^able Instruments
23 Counterfeit or Pirated Sound Recordings or Motion Pictures
24 Bank Theft Scheme Aborted ■ ■
25 Ransom, Extortion or Bribe Demand Aborted
26 Theft from, or Fraud Against, Government Scheme Aborted
27 Commercial or Industrial Theft Scheme Aborted
30 All Other Potential Economic Loss Prevented (not falling in any
category above)
•Except for cash, the Remarks section must contain an explanation of the computation of the recovery value or loss prevented. An explanation airtel must
accompany this report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
- Enter Description Code Only When Reporting a Conviction •
Organized Crime Subjects:
1 A Boss, Underboss or Consigliere
1 B Capodecina or Soldier
1 C Possible LCN Member or Associate
1 D OC Subject Other Than LCN
Known Criminals (Other Than OC Members):
2A Top Ten or l.O. Fugitive
28 Top Thief
2C Top Con Man
Foreign Nationals:
3A Legal Alien
3B Illegal Alien
3C Foreign Official Without Diplomatic Immunity
3D U.N. Employee Without Diplomatic Immunity
3E Foreign Students
3F All Others
Terrorists:
4 A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
*lf a subject can be classified in more than one of the
Union Members:
5A International or National Officer
SB Local Officer
5C Union Employee
Government Officials Or Employees:
Federal State
6 A Presidential Appointee 6J Governor 6R
68 U.S. Senator 6K Lt. Governor
6C U.S. Representative 6L Legislator 6S
6D Judge 6M Judge 6T
6E Prosecutor 6N Prosecutor 6U
6F Law Enforcement Officer 6P Law Enforcement Officer 6V
6G Fed EmpI - GS 1 3 & above 6Q All Others • State 6W
6H Fed EmpI • QS 1 2 & below
Bank Officers or Employees:'
7A Bank Officer
7B Bank Employee
All Others:
8A All Other Subjects (not fitting above categories)
categories, select the most appropriate in the circumstance.
6S Legislator
6T Judge
6U Prosecutor
6V Law Enforcement Officer
6W All Others • Local
Instructions
Subject Priorities for FBI Arrest or Locates:
A - Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
B - Subjects wanted for crimes involving the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C - AH others
Claiming Non-Federal Arrests, Summonses, Recoveries or Convictions:
It is permissible to claim a local arrest, summons, recovery or conviction If the FBI significantly contributed to the sccompllshmenL A succinct narrative
setting forth the basis for the clabn must accompany this report. When claiming a local recovery, enter the word "LOCAL’’ to the right of the amount. Enter
“LF" in the "In- Jail" block for ail life sentences and “CP" for capital punishment sentences.
Reporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conviction information can be submitted
by itself if:
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section tor eittier of the above exceptions.
Rule 20 Situations:
The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the'Sijpject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures.
Investigative Assistance or Techniques (IA/Ts> Used:
-Since more than one lA/T could have contributed to the accomplishment, each lA/T used must be rated.
-The lA/T used must be rated each time an accomplishment is claimed- (For example - If informant information was the basis for a complaint, an arrest, a
recovery and a conviction and if separate FD-5158 are submitted for each of the aforementioned accomplishments, the "Informant Information” block must bo
rated on each FD-51 5 even if it was the same information that contributed to all the accomplishments.)
Race Codes:
C = Chinese; 1 = Indian/ American; Jb Japanese; N= Negro; 0=A11 other; U= Unknown; W= White
FBI/OOJ
F'ORMS.;.lcEXX ,HAS 1 DOCUMETfff
TO SEEK THE INDICTMENT OF JUDY SHOPP SMITH AND TREASURER R. BUDD
DWYER. JUDY SHOPP SMITH IS THE WIFE OF WILLIAM T. SMtTH WHO
WAS PREVIOUSLY CONVICTED IN THIS MATTER, SENTENCED TO 12 YEARS
INCARCERATION AND IS NOW FREE ON A CHANGE OF PLEA BOND. PRI^F
SEEKING THE INDICTMENT AN AGREEMENT WAS REACHED WITH
^ ^
tr tr
-J <1 C?)
a o
PAGE TWO, PH 194C-361, U N C L A S
I FURTHER PROSECUTIONS ARE BEING
POSTPONED UNTIL THE THIRD CIRCUIT APPEAL IS RESOLVED AND BOTH
SIDES HAVE REQUESTED THE APPEAL BE EXPEDITED. THE U.S. ATTORNEY,
MDPA ANTICIPATES ADDITIONAL INDICTMENTS IN MARCH OR APRIL,
1985 .
IZZI
HAS PROVIDED INFORMATION ABOUT AN OFFER TO STATE
I FOR HALF OF HIS, I
SHARE OF
THE PROFIT ON A STATE FICA RECOVE RY CONTRACT SOUGHT BY SUBJECTS
1 1
1
MNTED
WERE NOT
THE MONEY FOR HIS CAMPAIGN. SUBJECT
SUCCESSFUL IN GETTING THIS CONTRACT,
, HOWEVER,
ASSISTED THEM IN OBTAINING A LATER CONTRACT.
^OFFERED STATE TREASURER DWYER $300,000 IF HE AND
jWERE TO RECEIVE A FICA RECOVERY CONTRACT FOR STATE SCHOOL
EMPLOYEES WHICH THEY SUBSEQUENTLY RECEIVED FROM THE
TREASURER'S OFFICE. TREASURER DWYER SAID HE WAS GOING TO DISCUSS
b6
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PAGE THREE, PH 194C-361, U N C L A S
TALKED TO TREASURER DWYER AND UNDER NO CIRCUMSTANCES WAS
ANY MONEY GOING TO DWYER AND THAT HE DTD NOT WANT ANYONE GOING
TO JAIL. □□ SAID THEY WERE CRAZY TO OFFER A CONTRIBUTION
TO DWYER PERSONALLY AND IF THERE IS GOING TO BE A POLITICAL
CONTRIBUTION IT IS GOING TO GO TO THE STATE COMMITTEE. |
I n THEN OFFERED $300,000 TO THE STATE COMMITTEE.
DURING A TELEPHONIC CONVERSATION,
[
AND IF HE 1
DID
□□
] asked | [ how much treasu
I
I
RER DWYER
]
HAD SAID HE WAS GOING TO GIVE DWYER $300,000
[
$150,000.
WOULD GET [
“Jesponded
TO GIVEF
IL
MIDDLE NAME).
1 1 SUBSEQUENTLY
REPEATED THE OFFER TO |
1
1 |wHO corroborated!
offer when he
TESTIFIED AGAINST |
1
=1
WAS A DEFENSE WITNESS IN
TESTIMONY DIFFERED SUBSTANTIALLY FROM
CRIAL AND HIS
STATEMENT.
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— ^
PAGE FOUR, PH 194C-361, U N C L A S
PHILADELPHIA IS KEEPINgI
COOPERATION ON A NEED TO
KNOW BASIS AS A LEAK COULD CAUSE SIGNIFICANT DIFFICULTIES.
PHILADELPHIA, AT HARRISBURG, PA.: INVESTIGATION
CONTINUING.
BT
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’ b7D
T
FD-36 (Rev. 8-2.6-82)
* Transmit via:
Teletype
□ FacsirrfHe
□ AIRTEL
FBI
PBECEiENCE:
□ Immediate
□ Priority
□ Routine
I
CLASSIFICATION:
□ TOP SECRET
SECRET
CONFIDENTIAL
UNCLAS E F T O
UNCLAS
Date 1/28/86
□
□
□
□
TO:
DIRECTOR, FBI
(ATTN: SPECIAL PROJECTS SECTION
ROOM IB 2 2 4, 1 |
FROM:
SA^,^*1^i^f^BURGH (194C-267) (P)
R. BUDD DWYER, --L — '
b6
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TREASURER OF PENNSYLVANIA;
ET AL;
HOBBS ACT - CONSPIRACY;
ITAR-BRIBERY; MAIL FRAUD
(00; PHILADELPHIA)
\
b6
Re Pittsburgh telcall to Special Projects Section, '
\l/28/86.
■■'b7C
Enclosed for the Special Projects Section is one'
rough draft of a proposed chart containing 7 exhibits, as well
as Xerox copies of each of the . 7 exhibits to be included on the
chart. ^
For information of the Bureau, this case involves
a pay-off in the amount of $6 ,374.86 by JOHN TORQUATO of COMPUTER
TECHNOLOGY ASSOCIATES, LTD. t(L
of the Pittsburgh City Cou ncil, Pittsburgh. PA. The pay-off by
TORQUATO was in return for | l in obtaining a
contract for the tax recovery work, which the gt a H-IH fnr
City of Pittsburgh in early 19 84. In retu rn for [
in obtaining this contract and | ^ during the contract,
TORQUATO issued a check from Cta to tukquaTO ' s attorney, ALAN
STONEMAN and t hen instructed STONEMAN to issue^ a check^in^tb
same amount to l ^
It is anticipated the trial in this case will begin on
2/18/86, in the Western District of Pennsylvania, Pittsburgh, PA,
and it is requeued that the Special Projects Section prepare a
chart utilizing enclosed rought draft and exhibits to show the
cash flow/of the funds for this pay-off check. It is teq^^stedj
B^^eai (Enc.
2 - Pittsburgh WAMi
Approved:
Transmitted
(Number) (Time)
1 6 IQSB
S
PG 194C-267
that the Special Projects Section prepare photographic blow-ups
of each of the separate seven exhibits to assist in pi^entation
to the jury and Pittsburgh Division case agent, along with
AUSA CHARLES DE MONACO will be in contact with the Special Projects
Section in order to make a final determination of the exact size
of the chart to be prepared and of the blow-ups of the separate
exhibits .
n • .
‘2*
DE PG
P 05230CZ FEB 86
FM PITTSBURGH (194C-267) (P)
PRIORITY
P-
ATTN: WHITE COLLAR CRIME SECTION, .^UBLIC CORRUPTION UNIT, SUPERVISOR/ ^
B. BUDD‘-1}HYE R, treasurer of PENNSYLVANIA; ET AL , HOBBS ACT,
CONSPIRACY; ITAR-BRIBERY ; MF (00: PHILADELPHIA)
RE PGTEL TO BUREAU, AUGUST 23, 1985.
FOR INFORMATION OF BUREAU, PITTSBURGH CURRENTLY PREPARING FOR// J
TRIAL IN HATTER RELATING TO PAYOFFS BY JOHN TORQUATO, JR., OF CTA ,
INC.
TO
IN RETURN FOR
OBTAINING TAX RECOVERY CONTRACT FROM CITY OF PITTSBURGH.
ASSISTANCE TO TORQUATO IN
' 02C FEB 14^7^
TORQUATO PREVIOUSLY PLED GUILTY TO MAIL FRAUD AND TTAR CHARGES.
RELATING TO HIS ATTEMPTS TO OBTAIN SIMILAR CONTRACTS IN HARRISBURG,
PAGE TWO 194C-267 UNCLAS
PA, AND APPEARED AS A WITNESS FOR PHILADELPHIA DIVISION IN TRIAL OF
TWO OF HIS CO-CONSPIRATORS IN SPRING, 1985, WILLIAMSPORT, PA.
CHARLES DEMONACO, AUSA, WESTERN DISTRICTOF PENNSYLVANIA (WDPA),
PITTSBURGH, PA, HAS ADVISED THIS MATTER IS SCHEDULED FOR TRIAL IN
FEDERAL COURT, WDPA, PITTSBURGH, PA, ON FEBRUARY 18, 1986 AND IT
WILL BE ABSOLUTELY NECESSARY FOR TORQUATO TO APPEAR AS WITNESS.
-TORQUATO, AS A RESUL OF HIS PLEA AGREEMENT, WAS SENTENCED TO
FOUR YEARS IMPRISONMENT, WHICH HE IS CURRENTLY SERVING AT BORON
BORON, CA. TORQUATO IS DESCRIBED AS WHITE MALE,
b(
POB HARRISBURG, FA, HEIGHT 6 M ” WEIGHT 172 , .
b
pounds', hair BROWN, EYES HAZEL.
IN VIEW OF TORQUATO STATUS AS FEDERAL PRISONER, IT IS UNDER-
STOOD THAT FBI WILL ASSUME CUSTODY OF HIM AND MAINTAIN HIM IN A
GUARDED CONDITION THROUGHOUT THE DURATION OF HIS APPEARANCE.
AUSA DEMONACO HAS ADVISED THATIT WILL BE NECESSARY TO HAVE TORQUATO
IN PITTSBURGH BY FEBRUARY 19, 1986, AND HIS PRESENCE IS EXPECTED TO
BE NECESSARY THROUGH FEBRUARY 28, 1986. TORQUATO WAS PREVIOUSLY
BROUGHT TO PITTSBURGH FOR FGJ TESTIMONY ON SEPTEMBER 2, 1985, UNDER
BUREAU CUSTODY AND RETURNED TO BORON FEDERAL PRISON CAMP ON SEPTEMBER 9,
1985. PITTSBURGH WILL UNDERTAKE IDENTICAL MEANS IN MAINTAINING HIM
FEDERAL PRISON CAMP,
1
PAGE THREE
194C-267
UNCLAS
IN CUSTODY DURING TRIAL.
IT IS NOTED- NO PRISON REDESIGNATION WILL BE NECESSARY FOLLOWING
TORQUATO'S TESTIMONY .
FBIHQ IS REQUESTED TO EXPEDITIOUSLY CONTACT
JUSTICE
'■[
AND FUR-
DEPARTMENT OFFICE OF ENFORCEMENT OPERATIONS,
NISH HER WITH APPROPRIATE INFORMATION IN ORDER THAT SHE MAY MAKE A
REQUEST TO THE BUREAU OF PRISONS FOR THE FBI TO ASSUME CUSTODY OF
TORQUATO AT BORON FEDERAL PRISON CAMP ON FEBRUARY IS, 1986, AND
b6
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RETURN HIM ON FEBRUARY 28, 1986
rflATLED 9
7-161 (Rev. 4-30 e2)
TRANSMIT VIA:
Classification:
AiaTBt
Bnclas
FROM:
Dii^eotor,
TO;
FBI
2/19/86
a. S00D D^sma,
•^EasuRBa OF PBBssYtvi^anr^
m ABi
HOBBS/ ACT - COSSFiaACYi
2TAR-BaiBBRV| MAIL PBAOD
There is (are) being forwarded to
K
your Q ggicQ
Attaj I
*’>' Set
the following _
prepared by Special Projects Section, Laboratory Division, re captioned matter.
The following action should be taken by your office; /
TRIAL EXHIBITS OR OTHER VISUAL AIDS /
□ Check the above items against submitted work papers or roughs. ^
g Advise FBIHQ, attention Special Projects Section, Laboratory Division, (within ninety
days), re the use and effectiveness of these items, including all pertinent comments
ARTIST’S CONCEPTIONS OR RETOUCHED PHOTOGRAPHS / A I / ^ f I f 07 ^
□ Have witness(es) view item(s) for evaluation. / / /
□ If modification is necessary, submit additional information and any pertinent comments
of witness{es) to FBIHQ, Special Projects Section, Laboratory Division.
□ Advise (within ninety-days) re the use and effectiveness of the above items. Upon
apprehension of subject(s), submit arrest photographs.
1 ~ pacltafo
(5)
61/0
3^.JULtl 1986
MflR
1986
/w- w
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i Xt-1 ri ow
CHeCK ^ 21^7 '
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^
li
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C'Hec^^ usr&:y ro
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[ ! *
I /\A1d a: f
^/ C/7SC^ LJeTVPT> 7o
/y'^0V(EiT Of'
Ct<x
FORMS. 'ni: XT HAS 1 DOCUMENT
INBOX. 12 (#1934)
TEXT:
FH 0210500151
RR HQ CO
DE p|
R 0190151 FEB 86
'' /L*
k.
KEntHAi/HuEnAU
OFlNVESfiGATiON
HQ CO
FM PHILADEL PHIA (1 94C~361) (HRA) (P)
TO ^.^eiTREAU ro]i:hi^
C;J<JJMBIA (194C-116) ROUTINE
BT
U N C L A - /),
gUirp DWYER. ^ E A SJJ lyi R 0 F. ,P E S Y L V A N XAJ * E T AL , H 0 B B S ACT;
CONSPIRACY; ITAR-BRIBERY ; AND MAIL FRAUD, 00: PHILADELPHIA
RE PHILADELPHIA TELEPHONE CALL TO THE BUREAU, FEBRUARY 18, 1986.,^
'f
FOR THE INFORMATION OF COLUMBIA INSTANT MATTER INVOLVES ATTEMPT
BRIBERY OF PENNSYLVANIA STATE OFFICIALS IN CONNECTION WITH THE
AWARDING OF A CONTRACT BY THE STATE TREASURER. TO DATE, FIVE
INDIVIDUALS EITHER HAVE BEEN CONVICTED OR HAVE ENTERED GUILTY PLEAS
INCLUDING ONE STATE OFFICIAL, TWO COMPANY OFFICIALS AND TWO ATTORNEYS.
THE INVESTIGATION HAS ENTERED INTO A SECOND PHASE DIRECTED AT THOSE
STATE OFFICIALS ALLEGEDLY AGREEING TO ACCEPT BRIBES FROM THE
CONVICTED SUBJECTS. SOME OF THE CONVICTED SUBJECTS
COOPERATING. DURING A FIFTEEN WEEK TRIAL IN 1985 TESTIMONY INCLUDED
ARE
Too
'IIL23im
Ov^
2 FEB 28 <986
PAGE TWO, 194C-361, U N C L A S
INFORMATION INVOLVING OFFERS OF CAMPAIGN CONTRIBUTIONS TO THE STATE
TREASURER, STATE ATTORNEY GENERAL AND OTHERS. AS PART OF THE
CONTINUING INVESTIGATION AN AGREEMENT WAS REACHED BETWEEN THE
UNITED STATES ATTORNEY, MIDDLE DISTRICT OF PENNSYLVANIA AND A
VERY SENSITIVE WITNESS WHICH REQUIRES A POLYGRAPH EXAMINATION.
SPECIAL AGENT I — ] COLUMBIA DIVISION, WAS DESIGNATED
IN REFERENCED TELEPHONE CALL BY THE BUREAU TO ADMI^aSTER THE
POLYGRAPH EXAMINATION. POLYGRAPH IS SCHEDULED FOR MARCH 4,' 1986
IN PHILADELPHIA AND SPECIAL AGENT | | SHOULD PLAN ON ARRIVING
IN PHILADELPHIA ON MARCH 3, 1986. SPECIAL AGENt I I SHOULD-
CONTACT SPECIAL AGENT [
RESIDENT AGENCY,!
I HARRISBURG, PENNSYLVANIA,
FOR DETAILS,
COLUMBIA AT COLUMBIA: ADVISED SPECIAL AGENT
MATTER.
□
OF INSTANT
b6
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BT
INBO^I (#7454)
T^XT :
PGOOOOl O'STi^lOSZ
i4j
RR H
DE PG*
R 192108Z FEB 86
FM PITTSBUB^*^^ ( 194C-267 ) (P)
TO DI^CTOj/( ROUTINE)
V
BT
UNGEARS
QUANTICO - ECONOMIC AND FINANCIAL CRIMES TRAINING UNIT
(p
R. BUDD DWYERx T REASURER OF PENNSYLVANIA : ET AL ; HO^BS ACT;
CONSPIRACY; ITAR-BRIBERY ; MF : (00: PH)
FOR INFORMATION OF QUANTICO, PG DIVISION IS CURRENTLY
PREPARING FOR TRIAL SCHEDULED TO BEGIN FEBRUARY 2i, 1986, IN
CAPTIONED MATTER RELATING TO PAYOFFS BY JOHN TORQUATO, JR., OF
COMPUTER TECHNOLOGY ASSOCIATES (CTA)
•;E;cc5:A21:^W,^-
I SccV-
; Ei i AL. ; l ;
INC., TO
PITTSBURGH CITY COUNCIL PRESIDENT, IN RETURN FOR|
TO TORQUATO IN OBTAINING A CONTRACT FROM THE CITY OF PITTSBURGH.
TORQUATO HAS PREVIOUSLY PLED GUILTY IN THIS MATTER AND IS CURRENTLY
A WITNESS FOR. THE GOVERNMENT. AMONG OTHER BUSINESS RECORDS MAIN-
TAINED BY TORQUATO ARE COMPUTER FLOPPY DISCS, ON WHICH, AMONG OTHE^^ •
THINGS, ARE LOCATED SPREAD SHEET PROGRAMS DETAILING PAYOFF TO BE (
b6
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?7 MAR 14 1986
‘ PAGE TWO
PG 194C-267
UNCLAS
MADE TCj py TORQUATO. INFORMATION CONTAINED ON THESE FLOPPY
DISCS HAS BEEN RETRIEVED AND PREPARED FOR TRIAL PRESENTATION BY |
OF THE ECONOMIC AND FINANCIAL CRIMES TRAINING UNIT, QUANTICO.
AUSA CHARLES DE MONACO, WDPA, PITTSBURGH, PA, HAS ADVISED
"I PRESENTATION OF THIS COMPUTER EVIDENCE AT TRIAL IS
CURRENTLY SCHEDULED TO TAKE PLACE ON FEBRUARY 24, 1986.'
IT IS REQUESTED, THEREFORE,' THAT | | OF THE ECONOMIC
AND FINANCIAL CRIMES TRAINING UNIT TRAVEL TO PG ON FEBRUARY 23,
1986, IN ORDER TO BE ABLE TO PREPARE FOR TRIAL PRESENTATION ON
FEBRUARY 24, 1986. IN THE EVENT OF AMY CHANGES IK THIS SCHEDULING,
I WILL BE NOTIFIED DIRECTLY BY PG.
I'
5
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BT
FORMS « TEXT HAS 1 DOCUMENT
FD-515 (Rev. 6-6-85)
ACCOMkiSHMENT REPORT
(Etiective 10n/85)
{Submtt within 30 days from date of accompliahment)
TO: DIRECTOR, FBI
FROM: SAC. ^ ^ i-
4/3/86
FROM: SAC,
SUBJECT:
BUDD DV)
194C-267
Field Office File Number
^5
_R. BUDD DWYEIL, 5
TREASURER OF PENNSYLVANIA — Squad or RA Number
E’F'aL; '"i
HOBBS ACT; CONSPIRACY; , .. c ■ , «: — TTT-
• • I Agent s Social Secunty No.
ITAR-BRIBERY; MF pi "
, ’U I I X if a joint operation will
(00: PHILADELPHIA)
^ r ^ - b7C (identity of other agenc)
'IK ^ V ^
Were any of the Inveatjoativt
msnl being claimed? U N
1 . Acctg Tech Rating
Aaaiatance
invaailgathra Aaalatanea or Tachniqua Uaad
assistance or techniques listed below used in connection with accomplish-
0 1 — 1 Yes - If Yes, rate each used as folows:
1 B Used, but did not help 3 > Helped, substantially
2 B Helped, but only minimally 4 b Absolutely essential
6. Eng. Sect. Rating j IS. Photographic Rating] 22. Telephone Rating
Tape Exams | Coverage | ToN Rees
2. Aircraft
Aaaiatance
g. Hypnosis
Assistance
16. Polygraph
Assistance
23. UCO
Group 1
3. Computer
Aaalstance
1 0. Ident Div
Assistance
1 7. Search Warrants
Executed
24. UCO
4. (>>rt8ensual
Monitoring
1 1 . Informant
Information
1 8. Show Money
Usage
25. UC
Other
5. ELSUR -
FISC
12. Lab Div
Exams
19. Surveil. Sqd.
(SCX3) Asst
26, NCAVC/
VI-CAP
6. ELSUR -
Title III
13. Lab Div
Field Support
20. SWAT Team
Action
27. Visual Invest -
Analyais (VIA)
7. Eng. Sect.
Field Support
14. Pan
Registers
21 . Tech. Agt. or
Tech Equip
. Preliminary Judicial Process -CompUnts li
I (Number of subjects)
B. Arrests, Locates, Summonses or Subpoenas Served (No. of Sub).}
Subject Priority*
- ? E Subpoenas
Served
FBI Arresta -
FBI Locates - Criminal
Summons
Local Arrests -
Local Ciim.
FBI Subj. Resisted ; Armed Summons
|D. Racovsrtes. Restitutions, or Potential Economic Loss Prevented (PELP)
(Explain valuathm In rsmartiB)
H
Hostages Held By Terrorists ; All Other Hostage Situations
Missing or Kidnaped Children Located
F. Final Judicial Procesa: Judicial District I
District State
[subject 1 Subject Description Code* — j
n Felony
Conviction
Combined Sentence |
Title
Section
Counts
In-Jail Suspended
Yrs 1 Mos Yrs I Mos
Probation
Yrs ] Mos
meanor
_L _L_J
1
□ Plea
Fines $
□ Trial
□ Pretrial
Diversion
—
Add consecutive sentences together.
Enter longest single concurrent sentence.
Do not add concurrent sentences together.
Sentence 10 yrs.-S yrs. susp. b 2 yrs, In-Jail.
Subject 2 5
ubject Description Code* —
EH Felony
Conviction
Combined Sentence |
EH Misde-
Title
Section
Counts
In-Jml Suspended
Yrs [ Mos Yrs [ Mos
Probation
Yrs 1 Mos
meanor
_]_ J_
1
□ Plea
Total
Fines *
□ Trial
D Pretrial
Diversion
—
Add consecutive sentences together.
Enter longest single concument sentence.
Do not add concurrent sentences together.
Sentence 10 yrs. -8 yrs, susp. « 2 yrs. In-Jail.
Amount of Suit
Settlement or Award
Conviction or Pretrial Div. Date Sentence Date
Subject 3 Subject Description Code * —
! □ Felony I , Conviction I
Add consecutive sentences togetner, y
Enter longest single concurrent sentence
" Do not add concurrent sentences .together.
Sentence 10 yrs.-S yrs. susp. » 2 yrs. In-Jail.
Subject 4 Subject Description Code*—
□ Felony
Titie 1 Action 1 Count
■ Total J ^
Fines * -
I
Add consecutive sentences together. I
_ Enter longest single concurrent sent^e? tf
Do not add concurrent sentences together, f
Sentence 1 0 yrs.-S yrs. susp, - 2 yrs. Ii
I Attach additional forms If reporting final Judicial process on more than four sub|scts, and submit a final dispositton tor ^^dy’Toraach'aubJacr" [
Remarks: (For every subject repor1e^f^ec«on^^^^^bove^^^^iame^OB^Bce^ex^n^0^n^SA^^^IIabl^^^^^^^^^^^^^^^^^^^^^^^J22^^^^_
I kcqui^e^^f^charcres of Title 18, USC, Section 19 51', one count y^
• by jury on 3/5/86. *=— »
S’ n '1' DEC t 8 1986
„UrtasM,), wAM/(drp.:u.4] j
Property Type Codes*
Code * ‘‘
No Description
1 Cash (U.S. and foreign currency)
2 StocK, Bonds or Negotiable Instruments ^checks, travelers checks,
money orders, certificates of deposit, etc)
3 General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
4 • Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
5 Heavy Machinery & Equipment {heavy equipment, computers, etc)
6 Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
7 Jewelry (Including unset precious and semiprecious stones)
8 Precious Metals (gold, silver, silverware, platinum, etc)
9 Art, Antiques or Rare Collections
1 1 Weapons or Explosives
20 All Other Recoveries (not falling in any category above)
Code
No
22
23
24
25
26
27
30
Potential Economic Loss Prevented (PELP) Type Codes*
£3'
©
&
Description
Counterfeit Stocks, Bonds, Currency or Negotiable Instruments
Counterfeit or Pirated Sound Recordings or Motion Pictures
Bank Theft Scheme Aborted
Ransom, Extortion or Bribe Demand Aborted
Theft from, or Fraud Against, Government Scheme Aborted
Commercial or Industrial Theft Scheme Aborted
All Other Potential Economic Loss Prevented (not falling in any
category above)
* Except for cash, the Remarks section must contain an explanation of the computation of the recovery value or loss prevented. An explanation airtel must
accompany this report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
• Enter Description Code Only When Reporting a Conviction -
Organized Crime Subjects:
1 A Boss, Underboss or Consigliere
1 B Capodecina or Soldier
tC Possible LCN Member or Associate
1 D OC Subject Other Than LCN
Union Members:
5A International or National Officer
5B Local Officer
5C Union Employee
Government Officials Or Employees:
Known Criminals (Other Than OC Members):
Federal
State
Local
2A Top Ten or 1.0. Fugitive
6A Presidential Appointee
6J Governor
6R Mayor
2B Top Thief
6B U.S. Senator
6K Lt. Governor
2C Top Con Man
6C U.S. Representative
6L Legislator
6S Legislator
Foreign Nationals:
6D Judge
6M Judge
6T Judge
3A Legal Alien
6E Prosecutor
6N Prosecutor
6U Prosecutor
3B Illegal Alien
6F Law Enforcement Officer
6P Law Enforcement Officer
6V Law Enforcement Officer
3C Foreign Official Without Diplomatic Immunity
3D U.N. Employee Without Diplomatic Immunity
BG Fed EmpI - GS 1 3 & above
6H Fed EmpI -GS 12 & below
60 Alt Others - State
6W All Others - Local
3E Foreign Students
Bank Officers or Employees:
3F All Others
Terrorists:
4 A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
7A Bank Officer
7B Bank Employee
All Others:
8A All Other Subjects (not fitting above categories)
• If a subject can be classified in more than one of the categories, select the most appropriate in the circumstance.
Instructions
Subject Priorities for FBI Arrest or Locates:
A - Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years,
B - Subjects wanted for crimes involving the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C • All others
Claiming Non-Federal Arrests, Summonses, Recoveries or Convictions:
It is permissible to claim a local arrest, summons, recovery or conviction If the FBI significantly contributed to the accomplishment. A succinct narrative
setting forth the basis tor the claim must accompany this report. When claiming a local recovery, enter the word “LOCAL" to the right of the amount. Enter
“LF" in the “In-Jail'' block for all life sentences and “CP" for capital punishment sentences.
Reporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conviction information can be submitted
by itself if :
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions.
Rule 20 Situations:
- The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures.
Investigative Assistance or Techniques (lAfTs) Used:
-Since more than one lA/T could have contributed to the accomplishment, each lA/T used must be rated.
-The lA/T used must be rated each time an accomplishment is claimed. (For example - if informant information was the basis tor a complaint, an arrest, a
recovery and, a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishments, the “Informant Information” block must be
rated on each FD-51 5 even if it was the same information that contributed to all the accomplishments.)
Race Codes: ^
C= Chinese; I = Indian/ American, J= Japanese; N= Negro; 0=AII other;''Us='Joknovi/n; W= White
PBI/DOJ
• ♦ ^ i
i FORMS. TEXT HAS i DOCUMENT FEDl'HA. InLAU
OFINVESTiOATiON
INBOX. 45 (#10372)
TEXT;
h FEDERAL GRAND JURY (?GJ? FOR IKE MIDDLE DISTRICT OF PENNSYLVANIA
(MDPA), RETURNED AN INDICTMENT ON MAY 13, IFSS CHARGING STATS
TREASURER R, 3UDD DMY:
CHAIRMAN ROBERT BRUCE
BRIBERY, AND PERJURY.
:r and former P ennsylvania r epublican
ASHER WITH CONSPIRACY. MAIL .FRAUD .. IJAR-
/ -
INDICTMENT WAS AKNOUNCZD AT^A JOINT PS2SS
WAY 27 1988
5/15/86
(P
R. BUDE(^^WYER, X)uiye/r
TR EASURER OF P ENNSYLVANIA: ' -
ET AL * — — — ^ ^
HOBBS ’ ACT; CONSPIRACY;
ITAR - BRIBERY; MP
00: PHILADELPHIA
This case was initiated on 7/6/84 upon receipt of
information from the Office of Auditor General for the
Commonwealth of Pennsylvania indicating that John Torquato,
hidden owner of Computer Technology Associates (CTA), Influenced
the Legislature of the Commonwealth of Pennsylvania to pass
legislation giving the Treasurer, R. Budd Dwyer, the authority t<] 3,5
collect $25 million in over-payments made by Commonwealth ,
employees to the Social Security sick leave system. In exchange,
for granting the collection contract to CTA, Torquato would pay
$300,000 to Dwyer, $100,000 to David I. Herbert, Director of
Social Security for Public Employees for the Commonwealth of
Pennsylvania, and $200,000 to others including former
Pennsylvania Republican Chairman Robert Bruce Asher.
On 10/22/84, a Federal grand Jury (FGJ), HarrTBC^g,
Pennsylvania, indicted: Torquato; Herbert; Judy Ellis, President
of CTA; William T. Smith, attorney and political figure in
Harrisburg; and Alan R. stonsaaiLi The Indlfltmfint disclosed that ,
, ttemni..^ wj^re made to bribe I I
payment t d
Torquato pled guilty and testified against the other defendants
leading to their convictions in the May of 1985*
The Pittsburgh Division built a case agalnst i H
surrounding a separate contract between the City o f Pitts burgh
and CTA. Torquato also testified in that case but i I was
acquitted in U. S. District Court, Western District of
Pennsylvania, Pittsburgh, Pennsylvania, in February! 1-1^6. The
only connection between the two cases was Torquato i
• Torquai
fi/1986
•j ViwV
7
to
tP
3C
c
V>
X-
o p'.^-^r-
Xtif> — o
— 1-4 jc:n^
o o -X ^
:2Mr'0
mrn
O*'
co
cx»
//nVjUSl'CE
On 5/13/86, a PQ.J^^ Middle District of Pennsylvania,
Harrisburg, Pennsylvania, retiJrned an Indictment charging Dwyer
and Asher with Conspiracy, Mall Fraud, ITAR - Bribery, and
Perjury. The Perjury charge stems from testimony of Dwyer and
Asher at the May, 1985 trial of the other defendants In this
case.
Information developed to dat^^n l | is not
sufficient for presentation to a FGJ^^ Also, none of the above-
named subjects a re known to offer information which might lead tc]Q5
an indictment of I | However, should Dwyer go to trial, 1^7^
information is very’ ITkely to surf’ace throug h testimony bv
Torquato and Smith that would be damaging tol [career.
I will keep you informed of developments in this
matter.
4
FloyG I. Clarke
2 *
FD-515 (Rev. 6-6-85)
ACCOMPLISHMENT REPORT
(Effective 10/1/85)
(Submit within 30 days from date of accomplishment)
TO: DIRECTOR, FBI
Phila^lphia L
subject/^ R . BUDdUdWyER ; 3 I
ET. AL.; YJa
/ HOBBS ACT; ITAaf^
X" MF (00: PH) r
P 4-C-361
eld Office File Number
i^4220
Squad or RA Number
TgenT^ocia^ecurit^^^
. ’ X if a ioint operation virith:
(identity of other aaency)
6/3/86
Were any of the investigative
I ment being claimed? U No
Inveatlgatlva Asalstanee or
W ve assistance or techniques listed
No XXybs • If Yes. rate each i
1 « Used, but did not help
2 ■ Helped, but only minimally
2. Aircraft
9. Hypnosis
1 6. Polygraph
Assiatanca
Assistance
Assistance
3 Computer ^
10. Idem Dlv
1 7. Search Warrants
Assistance o
Assistance
Executed ^
4. Consensual
1 1 . Informant
1 8. Show Money f
Monitoring
Information
Usage ^
5. ELSUR ■
1 2. Lab Dlv
19. Survell. Sqd. .
FISC
Exams
(S<3G) Asst
6. ELSUR •
13. Lab Dlv • 2
20. SWAT Team
Title III
Field Support
Action
7. Eng. Sect.
14. Pen
21. Tech. Agt.'^r
Field Support
Registers
Tech Equip
Technique Used
1 below used in connection with accomplish-
rsed as follows:
3 ■ Helped, substantially
4 ■ Absolutely essential
^b7C-
Group H
25. UC
Other
A. Preliminary Judicial Proeess | -Complaints | Informations |
(Number of subfeets) J [
P. Recoveries, Heatltutiona. or Potential
■ Property I
Type Recoveries
Economic Loss Prevented (PELP)
B. Arreata, l-ocatea, Summonses or Subpoenas Served (No. of Sub).)
~ I Subject Priority* ]
(Explain valuation In remarhs)
Local Arrests •
FBI Sobl. Resisted _
Hostages Held By Terrorists : Al Other Hostage Situations _
Mlssmg or Kidnaped Children Located
Amount of Suit
Settlement or Award
Subject 1 Subject Description Code* —
] Felony
1 Title Section Counts Yrs
Combined Sentence
I Suspended \ Probation
Yrs I Mos Yrs 1 Mos
Conviction or Pretrial Olv. Date
Subject 3 Subject
1 n Felony L-
DescripMon Code*—
Conviction
] Plea
} Trial
Q Pretrial
Diversion
Subject 2 Subject Description Code* -
TTUZZ I Conviction
■ Add consecutive sentences together.
Enter longest single concurrent sentence.
- Do not add concurrent sentences together.
Sentence IQ yrs.-S yrs. susp. = 2 yrs. In-
I Title I Section Counts Vrs
Combined Sentence
Suspended 1 Probation
. □ Plea
□ Trial
n Pretrial
Diversion
Subject 4 Subject Description Co^*-^
r Convictij/
Add consecutive sentences together.
Enter longest single concurrent sentence.
Do not add concurrent sentences together.
Sentence 1 0 yrs.-e yrs. susp. = 2 yrs. In-Jail.
I Mos
n Plea
□ Trial
□ Pretrial
Diversion
Add consecutive sentences together,
_ Enter longest single concurrent sentence.
" Do not add concurrent sentences together.
Sentence 10 yrs. -8 yrs. susp. = 2 yrs. In-,'
. □'^‘piea''*'^^' ^
□ Trial
D Pretrial
Add consecutive senten^s together}} ^
_ Enter longest single concurrent SOTtence.
Do not add concurrent sentences together.
Sentence 10 yrs.-S yrs..susp.'«>2 yrs. In-Jail;
I Attach additional terms It reporting iinal Judicial process on more than four aubjacta, and submit a final disposition lor (R-84) for each subject. | ^
(For every subject reported in Sections A, B or F above, provide name, DOB. race*, sex, and POB and SS AN if available.) Sub j ect DWyer , PennSj^'t^ania
State Treasurer, indicted by Federal Grand ^
(FGJ) , Harrisburg, Pa.V)/or
5/13/86 for one count, violation of
violation of T. 18, U.S.C., Section
T. 18, U.S.C., Section 1952 (a)(3) & 2; .
U. S.C,, Section 1623. Subject Robert b(^
kf^.S.C., Section 371; six count's!
& 2; four counts, violation of / j
^d one count of violation of ,
Alsher, former Pennsylvania Stape^
Republican Chairman indicted on the same day for the same counts.
subjects “appeared in U.S. District‘C6urt, Williamsport, 2.^, before- U. ijp
District Judge Malcolm Muir on 5/28/86 and entered pleas of not guilty fee
all counts. Both released on their own recognizance. '
1 - 194-C-361 (HRA) 1 - OSM 1— - HRA REB:kak (5)
tttFTOVi 7198-
^^4
%
Property Type Codes*
Code
No Description
1 Cash (U.S. and foreign currency)
2 Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
3 General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
4 Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
5 Heavy Machinery & Equipment (heavy equipment, computers, etc)
6 Bulk Materials (grain, fuel, raw materials, metals, wire, etc)
7 Jewelry (including unset precious and semiprecious stones)
8 Precious Metals (gold, silver, silverware, platinum, etc)
9 Art, Antiques or Rare Collections
1 1 Weapons or Explosives
20 All Other Recoveries (not falling in any category above)
Potential Economic Loss Prevented (PELP) Type Codes*
Code
No Description
22 Counterfeit Stocks, Bonds, Currency or Negotiable Instruments
23 Counterfeit or Pirated Sound Recordings or Motion Pictures
24 Bank Theft Scheme Aborted
25 Ransom, Extortion or Bribe Demand Aborted
26 Theft from, or Fraud Against, Government Scheme Aborted
27 Commercial or Industrial Theft Scheme Aborted
30 All Other Potential Economic Loss Prevented (not falling in any
category above)
An explanation airtel must
‘Except for cash, the Remarks section must contain an explanation of the computation of the recovery vaiue or loss prevented,
accompany this report if the recovery is $1 million or more, or if the PELP is $5 million or more.
Subject Description Codes*
Enter Description Code Oniy When Reporting a Conviction ■
Organized Crime Subjects:
1 A Boss, Underboss or Consigliere
1 B Capodecina or Soldier
1 C Possible LCN Member or Associate
1 0 OC Subject Other Than LCN
Union Members:
5A International or National Officer
5B Local Officer
5C Union Employee
Government Officials Or Employees:
Known Criminals (Other Than OC Members):
Federal
State
Local
2A Top Ten or 1.0. Fugitive
6A Presidential Appointee
6J Governor
6R Mayor
2B Top Thief
68 U.S. Senator
6K Lt. Governor
2C Top Con Man
6C U.S. Representative
6L Legislator
6S Legislator
Foreign Nationals:
6D Judge
6M Judge
6T Judge
3A Legal Alien
6E Prosecutor
6N Prosecutor
6U Prosecutor
3B Illegal Alien
6F Law Enforcement Officer
6P Law Enforcement Officer
6V Law Enforcement Officer
3C Foreign Official Without Diplomatic Immunity
3D U N. Employee Without Diplomatic Immunity
6G Fed Empl • GS 13 & above
6H Fed Empl - GS 12 & below
6Q All Others - State
6W All Others - Local
3E Foreign Students
3F All Others
Terrorists:
4 A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
Bank Officers or Employees:
7 A Bank Officer
7B Bank Employee
All Others:
8A All Other Subjects (not fitting above categories)
*lf a subject can be classified in more than one of the categories, select the most appropriate in the circumstance.
Instructions
Subject Priorities for FBI Arrest or Locates:
A - Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
B - Subjects wanted for crimes involving the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C - All others
Claiming Non-Federal Arrests, Summonses, Recoveries or Convictions:
It is permissible to claim a local arrest, summons, recovery or conviction if the FBI significantly contributed to the accomplishment. A succinct narrative
setting forth the basis for the claim must accompany this report. When claiming a local recovery, enter the word "LOCAL" to the right of the amount. Enter
"LF’’ in the “In-Jail" block for all life sentences and “CP” for capital punishment sentences.
Reporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conviction information can be submitted
by itself if:
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions.
Rule 20 Situations:
The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures.
Investigative Assistance or Techniques (lA/Ts) Used:
-Since more than one lA/T could have contributed to the accomplishment, each lA/T used must be rated.
-The lA/T used must be rated each time an accomplishment is claimed. (For example - If informant information was the basis for a complaint, an arrest, a
recovery and a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishments, the “Informant Information" block must be
rated on each FD-51 5 even if it was the same information that contributdd to all the accomplishments.)
Race Codes:
FBI/DOJ
A technical review of t he polygraph eKamination docujaents
pertaining to the eKamination of | |on ,
3/4/86 has been completed. This review disciosec tnat the
examination is satisfactory in all aspects and review personnel
concur with the results of the examination.
All documents are enclosed herewith, for appropriate
filing.
Enclosures (13)
1 - Mr. Diem
ITAR - BRIBERY; MAIL FRAUD
00: Philadelphia
7/25^6
A technical reviev/ of tho 1 nr^^vct-rar%h ovam-inat-irm docunj^ g
pertaining to the examination of | _ _ . , un
7/2/86 has been completed. This review disclosed that the exart^/C
is satisfactory in all aspects and review personnel concur witi:b7D
the results of the examination.
filing.
All documents are enclosed herewith.
Enclosures (9)
1 - Columbia (94-2) Attention: SaI
cO
GO
Mao
fbi/doj
FORMS. TEXT HAS i OOCUMElTr'
IN 80 X.il C^ 244 >> rr
TEXT: ‘ '
PH 02624825^5 6 SeP 9F Ij 7 I z
RR HQ LA QU
6 e PH ]
R 0052555 SEP 86
FM PHILADELPHIA <194C-561) <HRA>
TO ^^^gtRicT ^ROUTlNE
LOS ANGELES < 1940-255) ROUTINE
QUANT I CO ROUTINE
ATTENTION: QUi^TICO. KENNETH BISHOP; LOS ANGELES
•0
(AL^
SANTA ANA RESIDENT AGENCY (j^.
(H ' ' ■
R. BUOO BWYER; TREASURER OF PENNSYLVANIA; ET AL ; CONSPIRACY; MAIL J
FRAUD; I TAR-BRIBERY; HOBBS ACT; 00: PHILADELPHIA
FOR THE INFORMATION OF THE BUREAU AND RECEIVING OFFICES TRIAL
IN THIS MATTER IS SCHEDULED TO BEGIN OCTOBER 1, 1986 AT
WILLIAMSPORT, PENNSYLVAN I A . TESTIMONY WILL BE NECESSARY FROM SPECIAL
57
AGENT| |ANQ ^^BI5N 0P. ^THESE INDIVIDUALS WILL \^\C/ ^ ^
CONTACTED DIRECTLY WITH A SPECIFIC DATE FOR THEIR TEST 1MQN ¥— TS _ ;
ESTABLISHED BUT IS ANTICIPATED TESTIMONY FROM THESE INOIVlibi^W
BE REQUIRED IN THE MIDDLE OF OCTOBER, 1986.
ST I
FD-523 (Rev. 8-23-34)
From: Director. FBI
(Attn: Photographic Proces^^Unit, Rm. 1B903 TL151)
I \i^ l/f-iye- Cost Code: 1 0 IQ
AIRTEL
Date:
Subject: if’ j9 "l D Unclassified □ Confidential □ Secret
O- -/ .
^ ; ^7- /3 C ;
ENCLOSURES;
CONTACT FOR INFORMATION:
Size
Type
Quantity
Film
Negatives
Prints
Other
(specify)
(color and black & w
nite wor
k will not be
accepted on same request)
WORK REQUESTED:
□ Develop and print 1 ea. 372 x 5
Other;
JUSTIFICATION:
f7oT*RECORDED
3 • SEP 24 1986
PHOTO TECHNICIAN (Intl.) .
Ecl^fNl^UC^IONS ^ ^
ail ^001^ ^ow sIji^^nOd^e'^gTegistry number.
□ Shipping Room: Show shipment date; bill of lading
number, initial invoice; Invoice to be placed in a^inistrative file.
Enclosure
MAIL ROOl
FD-523(Rev. 9*9-82)
IMSTROCnOMS - REVERSE SIDE^
OF LAST PAGE *
f\\To: ^ ^Disector, FBI
1 v-^t. (Attn: Photographic Processing Unit. ra^B903)
004490
Date: 6/3/86
C, PHILADELPHIA ( 19 4 -C- 3 61) (HRA)*(^)
j Subject: R. BUDD^DWYER, TREASORER OF '
PENNSYLVANIA; ET, AL.; HOBBS ACT;
CONSPIRACY; ITAR - BRIBERY; MF;
, PERJURY
I (00;. PH)
! 1. ENCLOSED PHOTOGRAPHIC WORK RELATES TO:
Current Investigation □ Mug Shot □ Other
I 2. ENCLOSUIlE(S)
1 0 ■ wnr
Film To Be Processed
Size
Color
B&W
Quantity
4x5
135
126
120
SUdes
Movie Film or Microfilm
Size
Color
B&W
Quantity
16mm
35mm
8(super)
70mm
AHU
FBIHQ USE ONl^y H
^T^ocerved
Developed ikL'f J
/ /
Printed
7 /
Other M
Negatives To. Be Printed
Size
Color
B&W
Quantity
8x10
4x5
135
120
126
220
110
Other
Item I Quantity
3. WORK REQUESTED
Processing
□ Process only
□ Process & make print
□ Process & make contact print
□ Slides to be processed
□ Slides to be duplicated
□ •
□
Prints To Be Made
(From 135, 126, and 110)
□ 3y2x5 □ 5x7
# prints from each frame
□ Color D B&W.
(From 1 20 and 4x5)
□ 4x5 □ ex'io
# prints from each frame
□ Color a B&W
Prints To Be Made
(Prints from slides)
□ 3y2x5
'd 5x7
□ 8x10
Custom Prints
(From any size negative or slide)
Quantity
Size ’
□ Color □ B&W
^3-
4 . REMARKS Trial in this matter scheduled for 7/15/86. However,
' (include tnai date Of other these exhibits are- needed by 7/1/86. The two legal .
mandatory deadline and any enclosed are important in upcoming trial and need
olher specific insfniClions) be photographed and enlarged to allow the United
.States Attorney to use as a trial exhibit. Enlarge^-,
ments should allow the jury to |fn1Tnw alnnrr with the witness. On
6/2/86, this was discussed wit ' FRTrrn Questions should
be referred to SA F "l or l I F ini shed._ product
should be sent directly to the Harrisburg* RA, P. O, Box 31P2v‘ Harrisburg
PA 17108, and include originals, « ^
004490
Questions should
F ini shed._ product
B ox 3’1P2*7‘^ H a r r i sbu r g ,
3 ^ S3
FBIHQ Enclosure
FD-523{Rev. 8-23-84)
To; Director, FBI 4
(Attn; Photographic Processir
THIS FORM MUST BE TYPED
'f'
nit, Rm. 1B903TL151)
AIRTEL
SAC, PHILAe:^I£H;^(l94-C-361) (HRA) (P) Cost Code;
Date; 8/26/86
SubW(i/ OF
/ PENNSYLVANIA? ET. AL.TvTKR ~
. I’ BRIBERY; PERJURY ^MF; CONSPIRACY
ENCLOSURES; 7
^Unclassified □ Confidential □ Secret
4'601258
size
Type
Quantity
Film
Negatives
Prints
^ 7
CONTACT FOR INFORMATION; , 0
^//C/r i
Commercial ■ 717 232“86U6^''^ '
(color and black & white work will not be
accepted on same request)
WORK REQUESTED:
□ Develop and print 1 ea. SVa x 5
Other. One enlargement of each of the enclosed Polaroid snapshots
size 30 X 40, Trial in this matter scheduled for 10/1/86 and it is
necessary to have all evidence available 9/23/86. Therefore, it is
requested original snapshots and enlargements be. sent directly to
the Harrisburg Resident Agency, P., O. Box 312, Room 604 Federal
Building, 3rd and Walnut^jtreets-| — H^risburg, PA 17108. Photos
and prints are requestedby 9/19/86?^
FBIHQ Enclosure
Cost Code
WORK REQUESTS
FpRM^.iTEXT HAS 1 DOCUMENT
INBOX. 27
PH020022222>
0222225 JAN87
23Jah8] iUl(
FEULRAl bUREAU
OF INVESTIGATION
SAC PHILADEU»HIA < 1 94C-561 > (P) (1 IRA)
DIRECTOR
IMMEDIATE
1 '^. AO-Inv.
1 Tecs. £S-l£S
j
'' Cirk.'s.
‘ ' *flv. ^
^ for.-
'[ - C-0!<n.
|i i < 1 Cong.
r ' t.
’I I ■-i' Sijrvs..
ji «>x»tr.g
h '^ctsphom
fMnttof’s Stec>_
U N C L A S
ft . ftt\Db g> t>U^&P>
tf. eUOflOWVPB, TREASURER. COMMONWEALTH PE PENNSYLVANIA; ETAL
H0BB6 ACTi I TAR; MAIL FRAUD; 00; PH |
REFERENCED PHILADELPHIA TCLCCALLG TO FBIHQ WHITE COLLAR]
SECTION 1/22/87. ^
FOR THE INFORMATION OF FBIIIQ R, BUDD DWYER. TREASURER OF THE
COMMONWEALTH OF PENNSYLVANIA WAS SCHEDULED FOR SENTENCING ON 1/25/87.
HE^C^LED A PRESS CONFERENCE AT 10:50 A.M. ON 1/22/87 AT WHICH TIME HE
HANDED OUT APPROXIMATELY A FORTY PAGE STATEMENT WITH A COVER LETTER
ATTACHED DIRECTING THE STATEMENT JO THE HONORABLE JOSEPH^BIDEN UNITED
STATES SENATOR CHAIRMAN. SENATE ^JOO It I ARY COHMTTTCE.
CONTAINED HIS SIDE OF THE F/^GTS CONCERNING THE INVESTIGATION AND .
PROSECUTION OF HIM IN CONNECTION WITH THE 8RlBERY..AeTiVrTIES CONCERNING
\9&T
)StP2'liqPl7,
PAGE TWO. PH194C“>61. U N C L A G
THE CTA CORRUPTION CASE WHICH IG ONGOING FOR THE LAST TWO AND HALF
YEARS AT THE HARRISBURG RESIDENT AGENCY. AFTER HE HANDED OUT THE
STATEMENT HE MADE SOME BRIEF REMARKS HANDED OUT SOME ENVELOPES TO
SOME OF HIS AIDES AND THEN TOOK A REVOLVER PUT IT IN HIS MOUTH AND
COMMITTED SUICIDE.
THE STATEMENT WILL BE FACSIMLC TO THE WHITE COLLAR CRIME
SECTION ON THE AM OF 1/E3/87. ANY INQUIRIES REGARDING THIS MATTER
SHOULD BE DIRECTED TO SSRA
OF THE HARRISBURG RESIDENT
AGENCY. FBIHQ WILL BE KEPT APRIGED OF FURTHER DEVELOPMENTS AS THEY UNFOLD.
-1 -
FD-523 (Rev. 8-23-a4)
From:
Director, FBI
(Attn; Photographic Proces^o^.^ vat, Rm, 1B903 TL151)
WORK REQUESTED:
□ Develop and print 1 ea. 3 Vi x 5
Other: 0UQ Giilar§?2£uejit of cacli of t:ho GBcXoso^ Polaroicl auapsSiOto
size 3a s 40, ^rlal in tMs mtter cdmaoloa for 1O/X/0G it io
necesaaan? t£> have all evis3cace available 3/23/06, ^iierofore, it is
re^^stea original sna^ehots an£ gniarciiSEnents be sent Oireetly to
the Ilarrisbtsrg EosMent ligoncF* O, Boh 3X2^ Edoq 604 federal
imilding, 3r^ aca 0alnnt Str^tSsr £arri^>txa, Ea 17103, Photos
ancT prints are regvestea by 0/13/86,
JUSTIFICATION:
^rial
^ 3li
PHOTO TECHNICIAN (inti.) _
^OT fg^g^DEO j
SPECIAL INSTRUCTIONS
I^Mall Room: Show shipment date and re^try nwnber.
p Shipping Room:- ShcS,^ipmei4yefel;3)i^o}^i^
number, initial Invoice; invoice to be placed in administrative file.
JAW S 1987
\
“^mclosure
MAIL ROOM [
Mr. Diem
SAC, Philadelp hia (194-361)
Attentions SA |
Director , FBI
- :
^ 00* Philadelphia
R. BUDD^WYS R, TREASURER OP PE
EnrsC? "
^OBBS ACT* tSP; CONSPIRACY > PERJURY
4/10/87
b6
b7C
A technical review of the polygr aph examinatio n
docnmen ts pertaining to the examination ofT” L b6
2/6/87 has been coiapleted. Thl^^^rwlew disclosed^
. — uiaL Ln e examination is satisfactory in all aspects and
review personnel concur with the results of the examination.
filing.
Enclosures
All documents are enclosed herewith, for appropriate
Philadelphia (84-454)
( 5 )
O-
<c
Cx.c AD Arfm. _
Ex.c AD Inv.
Ex.c AD LES _
Aist. Dir.:
Adm. S«rv«. _
Crlm. Inv,
:h. Sarva. /
ihon. Rib. l__ , V ^ ^
'hAIL ROOM'ffi*
Lab. _
Legal Ceun.
OH, Cong.
Public AHs.
Roe. Mgnt,
Toch. Sorva.
Training
0
0^ MAY 15 1987^
FD-615 (Rev. 6-6-85)
ACCOMPLISHMENT REPORT
(Effective 10/1/85)
(Submit wittiin 30 daya trom date of accomptistimeet)
TO: DIRECTOR, FBI
SAC, Philadelphi-a*
SUBObCT: R. BUDD^^DWYER?
ROBERT B.<^ASHER; /
ET. AL.; HOBBS ACT;
ITAR; CONSPIRACY
(00: PH)
194-C-361
Fieid Office Fiie Number
2/6/87
Were any of the inveatjfl
ment being claimed? II
bieeatfgatlva Asafstance or Tachnfqua Uaed
ve a^stance or techniquea listed below used in connection with accomplleh-
No ^ Yes - If Yes, rate each used as follows;
1 - Used, but dkJ not help 3 - Helped, substantially
2 - Helped, but only mlnknaly 4 » Abadutoly essential
Assistance
2. A/rcraff
Agent's ^ocy^ecunlyUo. j I 3
□ X if a joint operation with: Assistance
4. Consensual
Monitoring
(identity of other agency) 5 . eLSUR -
S Xif cwe^wlves/
t. AcctgTech Rating I 8. Eng. Sect. Rating 1 15. Photographk
Tape Exam
9. Hypnosis
lOHdentDiv
Assistance
8. Show Mon
Usage
9. Surveil. Sq
(SOG) Ass
0. SWAT Tea
Action
Racovorles, Rsatltutlona, or Potential Economic Lose
FBI Arrests •
FBI Locates -
Local Arrests •
FBI Subj. Reslsled _
Hostages Held By Terrorists : All Other Hostage Situations _
Missing or Kidnaped Children Located
Amount of Suit
Settlement or Award
12/18/86
1/23/87
Subject Description Code* -
Conviction |
Title
Section
Counts
18
371
1
18
1952(
a) 4
18
1341
5
18
1623
1
Combined Sentei
Suspended T
I Subject 3 Subject Description Code*-
n I Conviction
Add consecutive sentences together.
Enter longest single concurrent sentence.
Do not add concurrent sentences together.
Sentence 1 0 yrs.-a yrs. susp. = 2 yrs. In-Jail.
I Subject 2 Subject Description Code* -
id Felony
Conviction
(J Misde-
Title
Section
meanor
ns
371
□ Plea
18
19521
S Trial
1341
l—J Pretrial
Diversion
1623
SuBject O^ription Code* —
I Conviction
r. r
: Oovemment Plaintiff
T 77
Acquitted ’~j g
Combined Sentence
r Joifgest single concun-en^^ntence.
ot add concurrent sentences together.
Sentence 10 yrs.-B yra. susp. - 2 yrs In-Jail.
„ . Combined Sentence . ,
In-Jail Suspended Probatior
20b, UUU
!l:g7 fFEB
Add consecutive sentences together.
Enter longest single concurrent sentence.
' Do not add concurrent sentences together.
Sentence 10 yrs.-S yrs. susp. = 2 yrs. In-Jail.
. □ Plea
□ Trial
[H Pretrial
Diversion
I Attach additfowal ternia If reporthtg ffnaf /udlcfaf process on more than tour aubjecta, and aubmft a Wnaf dtopoa/fton for (ft-a4) tor eaclr sub/ect
Remarks: (For every subject reported In Sections A. B or F above, provide name. DOB, race*, sox. and POB and SSAN if available.) Sut) "iCCt ttl, R» B'UC[fl**‘ DWy€ f3L ,
Treasurer, Commonwealth of Pennsylvania, convicted in trial by jury,\J
Williamsport, Pa., of 11 counts as set forth above. On 1/22/87, one day prior
to his scheduled sentencing, Dwyer, rat a press conference, committed suicide.
On 1/28/87, subject #2, Robert B. Asher, former Pennsylvania State Republican
Chairman, was sentenced in Williamsport, Pa. , by U. S. District Judge Malcolm
Muir to custody of the AG for one year and one day on each of 11 counts set
forth above. The sentences are to be served concurrently. In addition, Asher
ordered to pay fj^es of $205,000.
3 Field Office 1 “
* See codes on reverse si
HRA REB:kak
Code
No Description
Property Type Codes*
Cash (U.S. and foreign currency)
Stock, Bonds or Negotiable Instruments (checks, travelers checks,
money orders, certificates of deposit, etc)
General Retail Merchandise (clothing, food, liquor, cigarettes, TVs, etc)
Vehicles (autos, trucks, tractors, trailers, campers, motorcycles, etc)
Heavy Machinery & Equipment (heavy equipment, computers, etc)
Bulk Materials (gr^n, fuel, raw materials, metals, wire, etc)
Jewelry (including unset precious and semiprecious stones)
Precious Metals (gold, silver, silverware, platinum, etc)
Art, Antiques or Rare Collections
Weapons or Explosives
All Other Recoveries (not falling in any category above)
Potential Economic Loss Prevented (PELP) Type Codes*
Code
No Description
22 Counterfeit Stocks, Bonds, Currency or Negotiable Instruments
23 Counterfeit or Pirated Sound Recordings or Motion Pictures
24 Bank Theft Scheme Aborted
25 Ransom, Extortion or Bribe Demand Aborted
26 Theft from, or Fraud Against, Government Scheme Aborted
27 Commercial or industrial Theft Scheme Aborted
30 All Other Potential Economic Loss Prevented (not falling in any
category above)
•Except for cash, the Remarks section must contain an explanation of the computation of the recovery value or loss prevented. An explanation airtel must
accpmpany this report if the recovery is $ t miflion or more, or if fhe PELP is $6 million or more.
Subject Description Codes*
- Enter Description Code Only When Reporting a Conviction •
Organized Crime Subjects:
1 A Boss, Underboss or Consigiiere
1 B Capodecina or Soldier
1 C Possibie LCN Member or Associate
ID OC Subject Other Than LCN
Known Criminals (Other Than OC Members):
2A Top Ten or 1.0. Fugitive
2B Top Thief
2C Top Con Man
Foreign Nationals:
3A Legal Alien
3B illegal Alien
3C Foreign Official Without Diplomatic Immunity
3D U.N. Employee Without Diplomatic Immunity
3E Foreign Students
3F All Others
Terrorists;
4A Known Member of a Terrorist Organization
4B Possible Terrorist Member or Sympathizer
*lf a subject can be classified in more than one of the
Union Members:
5A International or National Officer
5B Local Officer
6C Union Employee
Government Officials Or Employees:
Federal State
6A Presidential Appointee 6J Governor 6R
6B U.S. Senator 6K Lt. Governor
6C U.S. Representative 6L Legislator 6S
6D Judge 6M Judge 6T
6E Prosecutor 6N Prosecutor 6U
6F Law Enforcement Officer 6P Law Enforcement Officer 6V
6G Fed EmpI • GS 1 3 & above 6Q All Others - State 6W
6H FedEmpl-GS 12 & below
Bank Officers or Employees:
7A Bank Officer
7B Bank Emp)oyee
All Others:
8A All Other Subjects (not fitting above categories)
categories, select the most appropriate in the circumstance.
6S Legislator
6T Judge
6U Prosecutor
6V Law Enforcement Officer
6W All Others - Local
; Instructions
Subject Priorities for FBI Arrest or Locates:
A - Subject wanted for crimes of violence (i.e. murder, manslaughter, forcible rape, robbery and aggravated assault) or convicted of such crimes in the past five
years.
• B - Subjects wanted for crimes involving the loss or destruction of property valued in excess of $25,000 or convicted of such crimes in the past five years.
C - All others
Claiming Non-Federal Arrests, Summonses, Recoveries or Convictions;
It is permissible to claim a local arrest, summons, recovery or conviction If the FBI significantly contributed to the accomplishment. A succinct narrative
setting forth the basis for the claim must accompany this report. When claiming a local recovery, enter the word “LOCAL" to the right of the amount. Enter
“LF" in the “In -Jail” block for all life sentences and "CP” for capital punishment sentences.
Reporting Convictions:
Convictions should not be reported until the sentence has been issued. There are two exceptions to this rule. The conwcWon information can be submitted
by itself if:
1 . The subject becomes a fugitive after conviction but prior to sentencing.
2. The subject dies after conviction but prior to sentencing.
An explanation is required in the Remarks section for either of the above exceptions.
Rule 20 Situations;
The field office that obtained the process (normally the office of origin) is the office that should claim the conviction, not the office where the subject enters the
plea in cases involving Rule 20 of the Federal Rules of Criminal Procedures.
Investigative Assistance or Techniques (lA/Ts) Used:
•Since more than one lA/T could have contributed to the accomplishment, each lA/T used must be rated.
. -The (A/T used must be rated each time an accomplishment is claimed. (For example • if informant information was the basis for a complaint, an arrest, a
recovery and a conviction and if separate FD-51 5s are submitted for each of the aforementioned accomplishments, the “Informant Information” block must be
rated on each FD-51 5 even if it was the same information that contributed to all the accomplishments.)
Race Codes: •
C = Chinese: 1= Indian/ American; J = Japanese; N = Negro; 0 = All other; U = Unknown; W= Whif3'=' " ’
>at/DOJ
JUDGE:
SYNOPSIS : On 12/18/86, R. Budd Dwyer, Treasurer of Pennsylvania,
and former Pennsylvania Republican Chairman Robert Bruce Asher
were found guilty by a trial jury, U. S. Federal Court, Middle b6
District of Pennsylvania (MDPA), on all counts as charged.
DETAILS : This case was initiated on 7/6/84 upon receipt of b7C
information from the Office of Auditor General for the
Commonwealth of Pennsylvania indicating that John Torquato,
hidden owner of Computer Technology Associates (CTA), influenced
the Legislature of the Commonwealth of Pennsylvania to pass
legislation giving the Treasurer, R. Budd Dwyer, the authority to
collect $25 million in over-payments made by Commonwealth
employees to the Social Security sick leave system. In exchange,
for granting the collection contract to CTA, Torquato would pay
$ 300,000 to Dwyer, $100,000 to David I. Herbert, Director of
Social Security for Public Employees for the Commonwealth of
Pennsylvania, and $200,000 to others including former
Pennsylvania Republican Chairman Robert Bruce Asher.
On 10/22/84, a Federal grand jury, Harrisburg,
Pennsylvania, indicted: Torquato; Herbert; Judy Ellis, President
of CTA; William T. Smith, attorney and political figure in
Harrisburg; and Al an R. Stoneman. The indictment disclosed
attempts were made I
Torquato pled guilty and testified against the other defendants
leading to their convictions in the May of 1985-
1 - Mr. Revell
1 - Mr. Baker
S MAR 13 1987
UNCLASSIFIED
UNCLASSIFIED
On 5/13/86, a FGJ, Middle District of Pennsylvania ,
Harrisburg, Pennsylvania, returned an indictment charging Dwyer
and Asher with Conspiracy, Mall Fraud, ITAR-Bribery , and Perjury.
The Perjury charge stems from testimony of Dwyer and Asher at the
May, 1985 trial of the other defendants In this case.
CURRENT DEVELOPMENTS : During the one month trial, the U. S.
Attorney's Office, MDPA, produced documents and testimony
resulting in the guilty verdict following four days deliberation.
Testimony was also produced disclosing the attempted bribery of
I ^wlth
the subjects in this case. However, no consideration is being b6
^ given by the U. S. ^ Attorney * s Office, MDPA, regarding prosecutiojj ^-? q
Floyd I. /clarke
UNCLASSIFIED
FO-3f5 (Rjev. 8-29-36)
’ T-
TRANSMIT VIA:
Teletype
%] Facsimile
S AIRTEL
FBI
PRECEDENCE:
□ Immediate
□ Priority
□ Routine
SSIFICATION:
TOP SECRET
SECRET
CONFIDENTIAL
UNCLAS E F T O
UNCLAS
Date 1/23/87
6
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
TO:
FROM:.
SUBJEC
DIRECTOR, FBI
ATTENTION:
OFFICE OF CONGRESSIONAL AND PUBLIC AFFAIRS
AND
WHITE COLLAR CRIME SECTION,
CRIMINAL INVESTIGATIVE DIVISION
PHILADELPHIA
(I94C-361^^ (HRS) (P)
R'. BUDD"^WYER ,
“TkEASOR'l!IlK’"(ITP PENNSYLVANIA^;
ET AL;
HOBBS ACT, MAIL FRAUD, CONSPIRACY
(00; PHILADELPHIA)
Enclosed for the Bureau are two copies of a document
distributed by Former Pennsylvania State Treasurer R. BUDD
DWYER at a press. conference in Harrisburg, Pa., on 1/22/87,
immediately prior to Mr. DWYER' s suicide.
The enclosed document consists of a letter fr^om-'Mf
DWYER to Senator JOSEPH BIDEN, Chairman, Senate Judicia.ry / I.
Committee, and U.S. Congressman PETER W. RODINO, Jr./ C/harr^'an,
House Judiciary Committee, regarding his conviction in the^///
captioned matter. There are six attachments to thik lottery
which address the following issues or topics:
A)
B)
Reform the "Justice" System - Reforms for the
U.S. Attorney's Office. ^
Reform the "Justice" System - Outline, of ^the U.S.
Government's Questionable Use of Plea Bargains.
__ .
.o T/'
- Bureau 'lEncls. 2).
2 - Office of Congressional and Public Affairs
1 - White Collar Crime Section, CID
Philadelphia (194C-361) (HRA)
ERL : pep
(4)
Approved:
Transmitted
(Number)
(Time)
SEE ADDENDUM, page 6 , CID
See OCPA Addendum, page 8
See Addendum, Inspection Division, page 9
/9
a
7
/
OFnCE OF
PURIJC * “FAIRS
i-EB 2 I 16 PH '8]
J I 1 ^
' /O
Ofi
“’8 m
^ir
^ I <Xyyyy
ran
rv.-)
\
PH 194C-361
C) Reform the "Justice” System - Restore the Grand
Jury.
D) Reform the "Justice" System - Abolish FBI Bonuses
(Bounties) and "Leaks. "
E) • An untitled document on stationery of the Office
of State Treasurer of the Commonwealth of Pennsyl-
vania, regarding the accomplishments of the State
Treasurer during Mr, DWYER' s term in office.
F) A press statement by State Treasuer R. BUDD DWYER
dated 1/22/87. ^
The enclosed document is a lengthy statement by Mr. DWYER
concerning situations and issues which he purports constitute
abuses of our judicial system. Among the issues cited by Mr.
DWYER are certain situations which concern the conduct of FBI
personnel involved in the captioned investigation. Mr. DWYER
does not present any substantive basis to conclude that the
conduct of FBI personnel was inappropriate. For the most part,
I his references to FBI personnel are associated with allegations
that FBI personnel leaked unspecific information concerning this
investigation to members of the press. It appears that the basis
for Mr. DWYER' s allegation rests solely upon the fact that FBI
personnel were seen conversing in public with members of the
media during the course of the investigation.
The following information is set forth to facilitate
a review of the enclosed document:
Cover Letter, Page 1, Paragraph 5, Number 1:
Mr. DWYER recommends a code of ethics be established
for FBI personnel.
Cover Letter, Page 2, Paragraph 1, Number 2:
Mr. DWYER recommends steps be taken to abolish leaks
by the FBI and bonus pa3nnents being made to FBI personnel.
Attachment 1, Page 1, Number I, Paragraph 2; /
Mr. DWYER alleges that the media was alerted to his ^ ^
appearances before the Federal Grand Jury and that leaks of his
Grand Jury testimony occurred. He does not address this allega-
tion to any specific individual or entity.
- 2 -
7
PH 194C-361
Attachment 1, Page 2, Number 2, Paragraph 1:
Mr. DWYER recommends that FBI Agents be prohibited from
holding public office or serving as a defense attorney for five
years following their separation from duty.
Attachment 2:
This attachment focuses on the conduct of Acting United
States Attorney JAMES WEST, Middle District of Pennsylvania, and
the plea bargain which was struck by the Government with JOHN
TORQUATO and others. No reference is made to the FBI or its
personnel in this attachment.
Attachment 3:
This attachment deals with Mr. DWYER' s claim that our
Grand Jury system is under the totalitarian control of a United
States Attorney. DWYER claims he was denied an opportunity to
personally present his case before the Federal Grand Jury by Mr.
WEST. He also presents an argument that a defendant's attorney
be permitted to accompany him into the Grand Jury room. No
reference is made in this attachment to the FBI or its personnel.
Attachment 4:
This attachment specifically deals with the FBI.
Page 1, Paragraphs 2 and 3;
Mr. DWYER indicates that it is not possible to determine
the amount of bonuses paid to FBI personnel in a specific office,
even through the filing of an FOIA request. He recommends that
bonuses for FBI personnel be abolished because they tend to
influence the performance of investigative personnel.
(Philadelphia notes that an FOIA request was filed in
this matter by Mr. DWYER for information regarding bonuses
paid to members of the Harrisburg Resident Agency. This request
was denied by FBIHQ.)
Page 1, Paragraph 4;
Mr. DWYER alleges that Special Agents of the Harrisburg
Resident Agency leaked information to the media in this case.
The basis for his allegation rests upon the following tenets;
- 3 -
PH 194C-361
A) An Agent had lunch with a member of the press who
thereafter wrote a series of articles concerning
this investigation, which contained information
that had been previously undisclosed to the public.
B) Two FBI Agents were observed talking to a member of
the media by a Grand Jury witness.
C) Mr. DWYER 's attorney met with Department of Justice
officials in Washington (to include one from Harris-
burg) . A few days later, information regarding the
meeting appeared in the press.
(While this disclosure to the media is presented by
Mr. DWYER to buttress his allegation that FBI personn<b6
leaked information to the press, it is noteworthy thaj^yQ
in a subsequent attachement he indicates the meeting
was attended by Acting United States Attorney JAMES
WEST and makes no mention of the attendance of FBI
personnel at the meeting.)
Attachment 5 :
" This attachment details the accomplishments of Mr.
DWYER during his term in office. No reference is made in the
attachment to the FBI or its personnel.
Attachment 6:
This attachment consists of Mr. DWYER' s press state-
ment on 1/22/87. The FBI is mentioned at several points in
the statement :
b3
b6
b7C
Page 11, Number 3:
An I
was allegeaiy suopoenaea co resciry oerore rne i?eaerai uram
Jury in this investigation on 11/27/84. DWYER alleges that
when the unidentified employee appeared, the Grand Jury was
not in session. He claims that the employee was subpoenaed
as a ruse solely to permit the employee's interview by SA
I I of the Philadelphia Office. He further
CDAr fni^eats were used during the interview in an
attempt to obtain false information and that an n-n
was falsely maHe tn the interviewee to the effect that ! |
I |had offered to pay the employee^ s
mortgage in return ror a favor regarding his handling of
a contract. DWYER indicates that this employee was a renter
as a basis for his claim that false allegations were made
to the employee.
- 4 -
\
PH 194C-361
Page 11 , Humber 4 :
On 7/30/85, DWYER alleges that Sa|
of the Philadelphia Office had lunch with a member of the
press. Several days later the same reporter wrote a series
of articles pertaining to the captioned investigation which
contained previously undisclosed material.
Pages 11 and 12:
On 10/29/85, SAs|
speaking with a member
land
or cne press
a
were observed
'about the case,"
(No specifics are provided by Mr. DWYER regarding his
conclusion that the noted conversation concerned this
investigation. )
Page 17 , Paragraph 4 ;
I r. DWYER mentions the actions of SA j | nd
along with other individuals, were a discredit to
the system of justice.
b6
b7C
OBSERVATIONS OF SAC, PHILADELPHIA;
The enclosed document is a lengthy diatribe by Mr. DWYER
against those who participated in his investigation and conviction
in the captioned matter.
Although Mr. DWYER cites alleged leaks of information
in this case by the FBI to members of the media, he provides no
specific basis for his allegation other than the fact that FBI
personnel were observed conversing with the media. In addition,
he infers that the FBI's use of performance awards for its inves-
tigative personnel constitutes an inappropriate incentive for its
personnel to seek information which will yield the conviction of
a public official.
It is apparent from a review of the document that both
of Mr. DWYER* s allegations regarding FBI personnel lack substance
and merit no further action. In view of that fact, SAC, Philadel-
phia, has declined to comment upon this matter in response to
inquiries from members of the media.
- 5 *-
ADDENDUM: CRIMINAL INVESTIGATIVE DIVISION (CID) 1/29/87
By alrtel dateci 1/23/87 > SAC, Philadelphia provided the
White-Collar Crimes Section, Public Corruption Unit, PBIHQ, with
copies of documents distributed to the members of the press in
Harrisburg, Pennsylvania, by R. Budd Dwyer, former Treasurer of
Pennsylvania. Dwyer distributed the documents Just prior to
issuing a press statement and then committing suicide by shooting
himself in the mouth on 1/22/8? • The alrtel indicates that
copies of Dwyer's documents were sent to U. S. Senator Joseph
Biden, Chairman, Senate Judiciary Committee and U. S. Congressman
Peter W. Rodino, Jr., Chairman, House Judiciary Committee.
Investigation of Dwyer was initiated on 7/6/84 on a
referral of Information from the Office of Auditor General,
Commonwealth of Pennsylvania, which predicated the case entitled,
"R. BUDD DWYER, TREASURER OF PENNSYLVANIA, ET AL; HOBBS ACT;
00: PHILADELPHIA." The investigation revealed that John
Torquato, hidden owner of Computer Technology Associates
Incorporated (CTA) of California, agreed to pay Dwyer $300,000 in
exchange for a data processing contract for CTA with the Social
Security for Public Employees for the State of Pennsylvania.
Dwyer, as Treasurer, had sole authority to grant the contract.
Dwyer was indicted by a Federal grand Jury, Harrisburg,
Pennsylvania, on 5/13/86, in violation of Conspiracy, Mail Fraud,
Interstate Transportation in Aid of Racketeering (ITAR) -
Bribery, and Perjury, and convicted by trial Jury on all counts
in U. S. District Court on 12/18/86. He was scheduled to be
sentenced on 1/23/87. Also Indicted and convicted in this case
were David I. Herbert, Director of Social Security for Public
Employees for the State of Pennsylvania, Robert Asher, State
Republican Chairman, and three others, all acting in a scheme and
conspiracy to accept some $600,000 from Torquato in exchange for
the contract for CTA.
Referenced Philadelphia airtel contained Dwyer's
allegations agai nst FBI and U. S. At tor ney personnel. Dp er
alleges that SAs | |and | | -ieaked
Information about! the the press. Although Dwyer was not
sp ecific on the facts of this allegation, he alleged that
SA I I was seen having lunch with a member of the press who
iptRP wr>ph<=> a. series of articles on the case and that SAs
^ and l I f ere seen speaking to a member of the press.
Dwyer provided no specifics regarding what the Agents supposedly
discussed nor who witnessed these alleged meetings.
b6
b7C
The other points made by Dwyer would appear to be his
Opinion and conclusions about the system of justice, the abuse of
the grand jury by the U. S. Attorney, the payment of bonuses to
FBI Agents, prohibition for five years of former U. S. Attorneys
and/or FBI Agents from holding public office or acting as defense
attorneys, and the ethical conduct of U. S, Attorney James West,
Middle District of Pennsylvania.
SAC, Philadelphia recommends no further action be taken
on this matter in view that Dwyer’s allegations are lacking in
substance and specificity.
On 1/29/87, SSRa[
Agency was contacted relative to this matter. SSRA | |
advised that no leaks of Information occurred during tne course
of this Investigation and that no newspaper articles appeared
about this case prior to the indictment stage. He also advised
th at there h av e been n o other allegations or complaints against
SA | I or | there been any other complaint of
misconduct by the FBI or the U. S. Attorney.
CID concurs with SAC, Philadelphia that in the absence
of any additional or specific Information, this matter merits no
further action.
^applsbuyg Realdsnt.
hir
APPROVED:
Director
Exec. AD-Adm._
Exec.AD-lnv. _
Exrc.AO-IES ,
Adin.Setvs.JL_ Uboratoiy.
Vi . Lonsi Coun.
-^^Im.lnv. Off. of Cong.
i.ispection_
tntell.,
Public Affs._
Rsc. Mgnt.
Tech. Servs.
Training _
^ . g .
7
i
Airtel to DIRECTOR, FBI
from SAC, PHILADELPHIA
Re: R. BUDD DWYER,
TREASURER OF PENNSYLVANIA;
ET AL;
HOBBS ACT, MAIL FRAUD, CONSPIRACY
roo: PHILADELPHIA)
ADDENDUM:
2 / 18 / 87 ,
OFFICE OF CONGRESSIONAL AND PUBLIC AFFAIRS
jmrw
The Office of Congressional and Public Affairs (OCPA)
concurs with the observations of SAC, Philadelphia regarding the
allegations of the late R. Budd Dwyer concerning actions that he
perceived as improper by FBI employees. SAC, Philadelphia has
concluded that Mr. Dwyer's allegations lack substance and merit
no response to inquiring members of the media. OCPA recommends
no further action regarding FBI press policy concerning this
matter .
-a-
AIRTEL FROM SAC, PHILADELPHIA, DATED 1/23/87
RE: R. BUDD DWYER,
TREASURER OF PENNSYLVANIA; ET AL;
HOBBS ACT, MAIL FRAUD, CONSPIRACY
( 00 : PHILADELPHIA)
ADDENDUM, INSPECTION DIVISION, liC^:mfs, 3/5/87:
The Office of Professional Responsibility, Inspection
Division, has reviewed the information provided in this airtel
and its enclosures. After a thorough review of this matter, OPR
has concluded that Mr. Dwyer's allegations against FBI employees
are not worthy of further consideration. On 2/10/87, a copy of
this airtel and its enclosures were presented to Richard M.
Rogers, Deputy Counsel, Office of Professional Responsibility,
Department of Justice, and following his review of the matter and
discussion with OPR/FBI I iMr. Rogers
advised that Mr. Dwyer 't aiiuyduiuiis weiy hul wuiuiy of further
consideration and were insufficient to predicate an investigation
concerning alleged misconduct on the part of DOJ employees.
APPROVED :
Adm.Servs.
Laboratory
Crim.lnv.
Legal Coun.
Director
Off. of Cong.
& Public Affs.
Exec.AD-Adm.
Ident t.
Rec.Mgmt.
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FBI PH HRH
JhN £3 ’87 3:32
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CominonM*eaUh of Pcnnaij|l^anla
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PRGiE . \d'd
j6sr/># “Bio**)
Ttke Honorable etrofy
United States Senator and
Chainnaji, Senate Judiciary
Cemittee
Room ^J^Russell Bldg,
Washington, DC 20510
The Honorable Peter W. Rodino, Jr,
^United States Congresstn£in
'Chaixnvan, House Judiciary
Canrdttee
Roan 2462 Rayburn Office Bldg,
Washington, DC 20515
'QlVEfJ
Dear Senator and Congressman Rodino?
The purpose of this letter is to respectfully request you in your capacity as
Chairman of the Judici^ Comuttee to conduct a full-fledged investigation of what
is known in Pennsylvania as the "CTA scandal". As a font^r high school teacher of
Problans of Democracy and an elected official for over 20 i^ears, I was naive about
our legal systen. I thought it was ideal, and I did not realize it could ^be used
for political persecution, I did not pay attention to the investigative/ reports,
or the work of various organizations attanpting to prenote the creation of a
justice system in fact as well as in name here in the United States because I
was taught that if I cA)e>^ed the laws and was a good citizen, I would be one of the
95% of our population who never became involved with our criminal legal system.
Then itiy idealism was suddenly destroyed, I became a victim of political
persecution right here in the United States, vdiich I never thou^t could happen 1
I knew vdiat happened to me and vhy it happened because many people from a
variety of sources have provided me with various pieces of information which
together tell the story. Unfortunately, 1 have only the oral word from itany of
these people. I have written out everything that has been told to me vhich tells
the full story of v^y, how and by whcir. I was polit'cally persecuted. This
infontatlon can be available to the proper legal authorities by certain people*
vho have a cc^ of the story.
You are the only ones vdvo can make positive changes and move our legal system
closer to our ancestors* goal of having a true system of justice here in the United
States. You have supoena power and the important power to grant iwnunity to people
reveal the truth to you. Many of ny staff, friends and family will be pleased
to assist you and share my unpublished story with you.
In addition, based on my experiences with our legal system, I request you to
enact legislation in the following areas;
1, The establishment of a Code of Ethics and
their assistants and members of the Fade
ct Attorneys,
ea^Onvestigatioo •
FBI PH HRA
PAGE . 03
JAH 23 ’87^^J32
• 2 -
2. Halt abuses BDd excesses by U.S* Attorneys and their assistants in the
utilisation of plea bargains and various other types of 10901 ''deals**.
3. ihe restoration of Federal Grand Juries to their historic purpose of
protectin 9 citizens, thereby uplifting them frcn the prosecutor's "rubber
stairp" function to which they have fallen.
4. . The abolition of leaks and bonus paynents to FBI agents.
Enclosed are four short papers regarding gone of the above suggestions. They
tell part of my story, (You have the power to develop the conclusion.) They are
based on my personal experience.
Please investigate these matters and enact legislation to correct these
probl^.
It's too late to help me, but it is not too late to help others, perhaps
including you. It is what our forefathers in 1776 and the delegates to our
Constitutional Convention in 1787 in Independence Hall would want you to do.
If you do not do it new, someone will have to do it later if any semblance of
a justice system is to survive in the United States and, in the meantime, many
other innocent people like my family and me will have suffered unjustly. Until
this occurs, I suggest that the v?ord "Justice" be removed from the Department of
"Justice" buildings, stationery, forms, I.D. Cards, badges, supoenas, etc, and a
blank left in place of the word "Justice" as a re^ninder to that Departeients ' staff
mesTibers and the citizens of the United States that we do not have a true "Justice"
system in the United States.
Thank you very much for your consideration.
Sincerely,
treasurer dF PENNSYLVANIA
Enclosures
cc: U.S, House Judiciary Cermittee and staff
U.S. Senate judiciary Cewrattee and staff
Pennsylvania Congressional Delegation
JhN 23 ’37 8:33
FBI PH HRH
PAGE . 04 .
ATEACKKCNT #1
REPORM I«E "JUSTICE” SYSTTM • RETORMS FOR THE U>5> ATTPRNEy^S CTFICE
Supreme Coirt Justice John MarshaJl once said in an opinion, "itie power to tax
involves the pouer to destroy.” Justice Marshall would have been equally per^
captive if he had said, "Ihe power to unfairly prosecute involves the power to
destroy, ”
The position of U.S, Attorney is one of the most powerful positions In the
United States govetnnent because there is no checX or balance for a U.S, Attorney
who abuses hie position, uses the ^sitiOn for political gain or uses the poslticn
for a personal vendetta against Innocent citizens,
personal experience as an innocent victim of our legal systan leads me to
reconmend tire follcx^ing reforms to help convert our current legal system to a true
systm of Justice.
I. A U.S- Attorney should be controlled by a Code of Conduct and
Ethics. If a U.S. Attorney or a monber of his family is a
friend, former orployee or has a personal relationship with a
person under investigation or an attorney representing a person
being investigated, the U.S. Attorney should conpletely remove
himself or herself from the case. The case of the CTA
investigation in the Middle District of Pennsylvania
(1984- ? ) is an illustration of the need for a Code of Ethics
and Conduct, The Acting U.S. Attorney, James West, was a
former enployee of Pennsylvania Governor Dick Thornburgh. West
had been an Assistant U.S. Attorney when Thornburgh was U.S.
Attorney for the Western District of Pennsylvania and had been
appointed by Thornburg to serve as a Pennsylvania Deputy
Attorney General Thornburgh became Pennsylvania's Governor
in 1979. When Roy 2iiTTnexman became Pennsylvania's first
elected Attorney general in 1981, Ziitmeiman reappointed Vfest as
a Pennsylvania Deputy Attorney General .
The CTA case involved allegations of bribery to various
Pennsylvania public officials. Allegations were made that
bribes had been offered to Penial vania* a Treasurer, Budd
Dwyer; Attorney General, Roy Zunneman and/or his staff members
and members of Governor Thornburgh's staff. With West's tws
iirmediate fomer enployers, Thornburgh and Ziirmerman, or sane
of their staff manbers involved in the investigation, it was a
situation which should have mandated that West remove himself
iron the investigation. Instead, he assumed full personal
control of the investigation, ixyer, although of the same
political party as Thornburgh, had fulfilled his role as an
indepewlently elected official and had refused to pay various
bills including sane for the Govem^r's family, Vhenever IX/yer
or anyone associated with him was called before the Grand Jury,
the media was sanehow alerted and received lea3cs of the
testimony as news media accounts indicate. In contrast, the
-ovar-
Prt6E . 05,
- 2 -
4ppeAranc66 of ZimrenrAn's staff mortera bsfore the Grand Jury
were in secret and menbers of Thornburg's staff were not even
cabled before the Grand Owcy as far os can be detennlned.
In contrast to James West's actions in the CTA investigation,
during the same time frame in California, the U.S. Attorney for
^them Cedifonua, Robert C. Bonner, reroved himself fran the
investigation of the California Assembly Democratic Leader
Sijrply because Bonner had been a- Jaw partner of the Attorney
representing the Asssfrbly Lea(3er. Bonner's ccmnendable
self-removal was a matter of his personal ethics and had
^thing ^ do with any requirgnent of the U.S» Department of
Bonner's Chief Assistant pointed out, "Rob (Bonner) has no
ethical or legal obligation to recuse himself*.." Los Angeles
Times , page 1 METRO, December 6, 1985. Clearly, Congress
should enact legislation requiring recusal by U.S. Attorneys in
investigations where they have conflicts of interest. Failure
to recuse therr^elves should lead to dismissal and prosecution
for Prosecutorial Miscor^luct.
II. U.S. Attorneys and Deputies and FBI agents should be prohibited
frcm running for public office or becoming criminal defense
lav^'ers for clients being investigated by the Federal
government for a minimum of five ^'ears after leaving their
positions in the U.S, Attorn^' s Office.
A review of candidates for state and Federal office will indicate
that many candidates have served in the U.S, Department of "Justice
For exanple, the 1976 gubernatorial primary in Pennsylvania had
three candidates vrfio had served with the "Justice" Department
in U.S. Attorney's Offices and/or in the Washington office.
Former "Justice" Department lawyers won both the irajor party
nominations.
Seme lawyers serving appointments in the U.S. Attor^'s
offices throughout the U.S, do not appear to be as interested
in see)cing truth or justice as they are interested in see)ting
publicity and "big pelts" in the form of public officials,
successful businesspeople, sports figures and others who are of
interest to the news media so that the particular U.S- Attorney
can beceme better known for a future political canpaign. Other
U.S. Attorneys ap^aar to be more interested in building a big
resume of prosecutions so that they can coimand six figure
incones as criminal defense attorneys in criminal defense law
firms.
Regardless of the motive, self-serving U.S. **Ju5tice" Depart-
ment attorneys are a disservice to the general public \iAyo
think their tax dollars are paying for a Justice system aid
-over’
especially to the s^jbjectf and targets of their sensational
publicity seeking investigations.
One o£ the nost basic provisions of state and iminicipal Codes
of Ethics is that forner officials and manageinent category
fxjblic onployees cannot do lobbying work, or practice lav in
connection with their former public wployer for varying
lengths of time. Why then, shouldn’t the U.S. Departit^nt of
’'Justice'* frcm which most U.S* citizens think they are
receiving objective justice and truth have a similar Code of
Ethics provision for U.S* Attorney’s, their assistants and FBI
agents?
Ill, The legal costs of those under investigation should be paid by
the government if there is no indictment or if there is an
indicterent or no conviction. This is an obvious reform. At
current legal costs, it is unfair and unAmerican for the U.S.
Government to financially ruin innocent businesses, families
and individuals and then walk away frcm them. Volumes could be
written on this topic. The government already provides legal
counsel for those unable to financially afford private counsel.
V3hy then is it fair and legal to financially ruin innocent
citizens who can initially afford the horrendous costs of
private counsel but vtose assets vanish during an investigation
and trial. The costs of this gigantic step tcward creating a
Justice System in the United States would be carparatively
minimi since the current "Justice" Department proudly bo^ts
of a conviction rate of approximately 95%.
t-bi PH HHH
PR6E . 06
ATTACHMmr #2
REXORM IHE JUSTICE SYSTB^ - CVTLIKE CT OKE U.S- OCVETOffJTr’S QUESTIONABLE USE
PLEA BARGAINS
Certain very questionable activities are legal in the United States today if
they are done by and for the Gcnremment. The root of this practice in the United
States is in the dubious use of plea bargains by prosecutors. If these things were
done by a private citizen they would probably be against the law.
Plea bargaining was originally created to save public funds and the resources
of our legal systep>. If the evidence was ^overwhelming against a defendant^ plea
bargaining gave the prosecuticsr^ and defendant's attorney the opportunity to
"bargain" a reccmendaticai to the court for a reduced sentence, and have dismissal
of counts in ^change for the defendant's guilty plea to a reduced number of
counts, substituted lesser counts, etc. This saved the legal system the ti^ and
financial cDcpenditure involved with conducting a trial for a person who was guilty,
but otherwise would have pursued a trial hoping that the "law of averages" or a
legal technicality would result in eventual acquittal. Unfortinately, sore U.S.
Attorneys have abused the plea bargain process and used it in a manner' far rsnoved
fron the original purpose.
The follcvlng actual exanple frem the so-called "CTA Case" in the U.S. Middle
District of Pennsylvania (1984-* ? ) is a good illustration.
John Torquato, Jr. had bribed David Herbert, then Pennsylvania's Director of
Social Security for Public Bit>lqyees, to provide incorplete and false information
to the Pennsylvania Treasury Department FICA recovery task force in a successful
effort to steer the contract to Torquato's conpany. Both Torquato and Herbert
admitted this bribe. Torquato admitted he directly lied to members of the Ta^
Force. However, the State Treasurer who had awarded the contract to Torquato
based on the recontnendation of his Task Force, was in prosecutorial terminology a
"big pelt". Thus, a plea bargain irvduced Torquato to provide testiitiony against
nvyer. Torquato had originaUy been indicted on 16 counts with a maxdjmjn penalty
of 60 years in prison and a $106/000 fine. Torquato's business associate and
live-in girlfriend was indicted on identical counts, as were two of Torquato's
cOT^ianies.
The plea bargain to Torquato consisted of the following;
Torquato's 16 counts were reduced to one count with a fine of $10,000 and the
prosecutors guarantee that he would recerrmend a two-year prison term, which meant
that Torquato would only serve a fe^ months at the Federal prison camp of his
choice. This would save Torquato almost the entire 80-year prison exposure and
$96,000 in fines. In addition, 15 counts against Torquato's business
associate-girlfriend were drop^ in her plea bargain and She was given a onfr-newth
sentence, required to participate in an alcohol treatment program and pay a $5,000
fine. ThtAs, another potential $101,000 in fines and 79 years and 11 nonths incar-
ceration exposure were dropped ^ the gesverrment.
But acting U.S. Attorney James West was not finished with his favors to
Torquato. Shortly before the beginning of the anith-Stoneran trial in which
-overr
35 FBI PH HRA
PAGE . 0 r' •
JAN £3 ’87
-2-
Tonuato and I Iwere to be the key witnesses, the Acting U,S. Attorney droppe<l
all 16 counts in the indictment against both of Torquato ‘svcarpanies. The result -
another potential savings to Torquato of $212,000 in fines. Total - $90o3', plus
$101,000 to his girlfriend, plus $212,000 equals a $409,000 ple a barga in fine
forgiveness the U.S. Gesvemment to acinitted felons Torquato and l l piun the
nassive reduction in incarceration time. Itorquato also was not prosecuted for the
possession of an illegal machine gun or other possible Federal offenses and anothei
bus^ss partner, who was his father, was not prosecuted. In February of 1985, the
Acting U.S. Attorney James West, appeared before Torquato’s parole board to
reoemnend further leniency for Tor^to,. This is unheard of vW.le a case is still
in progress.
West v^n I ha ^^n vi^tioh' ^of • ^th Stbnem^ to a great extent with -
Tbrquato's and | | teBtlrx>ny. ' Actihg U.S, Attorney next turned his
attention to tvro "big pelts**, the State Treasurer and the former Pennsylvania
Republican Chairman. At his trial. Smith had truthfully testified that he and
Torquato had never offered a bribe to Treasurer Cwyer in return for the personal
services contract. Following his conviction. Smith was financially broke frem the
cost of his trial and was facing a 12-year prison sentence, but Smith stuck with
his truthful testimony.
However, Smith's law partner was his wife Judy, who allegedly had heard serne
of the discussions when Torquato and Smith were alleged to have conspired to bribe
public officials.
Four months after his conviction. Smith was told that t4s wife, Judy, the
mother of their five-year old son and stepmother of their 13-year old child, would
be indicted. Financially broke, sentenced to a 12-year prison term, and faced with
the indictment of his wife and mother of his children. Bill Smith did what irostbG
men, other than G. Gordon Liddy, vvould do. He agreed to change his trial testij ]3 7(;;;
and corroborated Torquato's testimony. To sweeten his deal with Smith, Acting b.o.
Attorney James West also agreed that if Smith lost his appeal he would recemnend to
the Court that Smith serve no longer than the 22 months Torquato would serve and
have his fine reduced to $10,000. There was no plea involved. Smith had been
convicted and his wife, Judy, was given irmiunity without admitting any wrongdoing.
It was a srrple case of the U.S. Attorney using such inducements to dbtain wanted
testimony ,
There is no check ard balance to the U.S. prosecutors utilising such
inducements to obtain desired testimony in pursuing an innocent victim. A review
of the transcript of the Snith-Stoneman trial will show that at least a dozen
people testified that Torquato had given untruthful testimony and at least five
people had testified that Torquato’s live-in girlfriend-partner had given un-
. truthful testimony, Ihe State Treasurer tried to fight back against the use of the
legal syste m to pers ecute him. He tried to bring a private perj\^ case against
Torquato an d stopped cold. Why? After extensive research, .
Dwyer’s legal staff told him that only a prosecutor could bring perjury charges.
Thus, if perjured testimony benefits the govemnent the prosecutor can choose b 6
to indict the individual for perjury as h^ happened in this case. b7C
The ultimate irony ! By now >'ou won't be surprised to learn that it
was the State Treasurer who was indicted for perjury. Research this case. The
above review only scratches the surface.
wjver-
FBI PH HRA
PAGE . 08
JAN 23 ’87
0
@t;r Pistridt-^eius Co.
Raymond t. Cover Edwin F. Russell
PUBLISHER PRESIOENr
Ronald W. Minard , , _ Henry H. Young
EDITOR S > • EXECUTIVE EDITOR
— A Free Freti — Armor of the
Hold to thfig bargain
Not a time to talk: leniency with Torquato
AT ABOUT this time last year. John Tor-
quato Jr. was singing his head off. His song
was sweet music to the ears of federal pro-
secutors in Harrisburg, and it played a major
part in convicting several others on bribery
and con.spiracy charges.
But for all that, was his testimony so
powerful as to justify forgiveness of a prison
term to winch Torquato had already agreed
as part of a ploa-bargajning agreement?
Acting U.S. Attorney Janies West thinks
so, and he recently traveled to California
seeking Torquato’s early release from Boron
Federal Prison. Torquato is completing the
first year of a four-year prison sentence for
conspiracy to bribe Pennsylvania state offi-
cials to direct contracts to his firm. Comput-
er Technology Associates, also known as
CTA.
West feels Torquato's "services’* during
the trial merit his early release from prison.
As a condition of the plea-bargaining agree-
ment wditch secured Torqunlo’.s testitnony,
West made known to the court the fact that
Torquato hod cooperated with the authori-
ties and wo.s willing to offer valuable testi-
mony in return for leniency. Very well. U.S.
Middle District Senior Judge Malcohn Muir
said in effect, four years.
WE BELIEVE Torquato already has got-
ten as much leniency as he deserves. He was
the mastermind of the now-infamous CTA
scheme, and It was he who stood to reap the
most iil-gottcn gains from It. Certainly, his
testimony succeeded in convicting Paxtang
lawyer William T. Smith, who was sen-
tenced to 12 years, and California lawyer
Alan R. Stoneman of related charges, but
these men w’ere mere players In the CTA
game; Torquato was the man calling the
shots.
Furthermore, no threats or promises
were made to Torquato in return for his tes-
timony. Had he not been willing to abide by
the court’s discretion in the plea-bargain, he
should have entered a plea of innocent or
held out for something better.
It also mu.st be remembered that the CTA
scandal has not yet fully unfolded. Torquato
is testifying again in the trial of a former
Pittsburgh City Council president charged
with taking a bribe in return for casing the
way for CTA to do busine.s.s wiih that city. If
Torquato succeeds In getting an e;»r|y dis-
charge from the Harrisburg sentence, what
"incentive** is left for him to finish the job in
Pittsburgh?
Torquato was .sentenced to four years,
and he should serve four years, condltionaf
on lerh)s of parole and good behavior. To
extend to him an undeserved bouquet would
further undermine a justice system already
strained by the generosity Of the plea-bar-
gaining process.
FBI PH HRh
PAGE . 09 ‘
JAN 2 E
’ 87
-3*
reforms are simple and obvious:
1. rtiB U.S. Congress should enact a law providing that
any prosecutor who abuses the true purpose of the
plea ^gain be dismiesed from office and prosecuted
2. O.S. Congress should enact a law providing that
private perjury cases can be filed in a manner similar
to othei private crlittlnal prosecutions .
:B^Pr seeks parole
for CTA s Torquato
• "salted la (I»
U-S. DUtrict Coart ^ ?** *“ ®l WUliarr. ^S^SuflS!
It Is ujjusual conduct Mr D«uplufl County hepubite^a ’
mover" in tJI?'ComnuSf ^ «Pp6ar on behS^i to: CTiL
t of ' • Mnl66la Muir ^ Torquato. '
r Of ♦ Who denied a reouest hv ^2 . S** he went to Boron Fedcp.
m l cooperation
»ma.- a
- — ^ raroie
e ^fwn*^aTf2ifnj'»iri ' » yw rectiVad ■
wwunent ibon*' ,»*■ ?“ **'“?. !J“*'‘y*srieLianctfrom UAMirfitil an aaiailj of w«i
la'5S^nE«!& “faiTSStSf? ■ ■S?S'"'K!!SSSS,%
S5S??'
Sj-%5'SStt'5Sia
StOOe is AfWtmol W '
sJ!TS.*fra-hi!v
««*. irlld. b «. baffl{i,ay •*
- GonMraan ttJd be did not km
uilj week, wbttlNi
eould^oot itj;
r M acaeouifd oo IWdav
^^^TtSS.’SS
ss^t * -“* “
J>"
<^c/■'
.f'
FBI PH HRft
PAGE . 10 ,
JAN 23
’ 8 ?
#
ATTACHMEW $2
REIX3RM THE '’JUSTICE'’ SVSTTM • RESTORE TOE GRAND JURY
The Grand Jury waa created in Digland several centuries ago to protect
inno^t citl2ens from corrupt or overreaching prosecutors, and at that time was ^
considered to he a great democratic legal reform. The Grand Jury was adopted in
the U.S, \;^n the ratification of the 8th Amendment to our Constitution to continue
this protection for U.S* citizens. Unfortunately, in recent decades the Grand Jury
system in the U,S. has deteriorated to a point where it has become a rubber stanp
choir for the prosecution, and instead of protecting citizens, the Grand Jury now
aids the \andermining of the original intent of the system and of overreaching by
prosecutors against innocent citizens.
In. many states and local jurisdictions, the Grand Jury has been recognized as
the sham it has becana, and has been abolished or modified. The Grand Jury cannot
be abolished at the Federal level since the Grand J\ny is required in the Bill of
Rights of our Federal Constitution. Since Federal Grand Juries can’t be abolished,
the U.S, Congress should enact legislation providing that Grand Juries be nodified
from their current "choir" status to restore the historic protection for innocent
citizens.
An analogy can be found in Pennsylvania government. Several, decades ago, the
Pennsylvania Public Utility Cctmiission (PUC) was created to prolject utility
consumers frcm the monopoUstic, self-serving and overreaching utilities. Over the
years the utilities ingratiated themselves with the PUC. The consumers lost much
of their protection and the PUC became known as simply the "Utility Comissiqn".
The Pennsylvania legislature, responding to anguished pleas from consumer
groups, restored a Treasure of protection by creating the office of Consumer
Advocate whose attorneys now appear before the PUC Ccnmissioners in opposition to
the rate increase proposals being advocated by the attorneys for the utilities.
The iitplementation of the following similar recormendations would be a
significant step to restoring the Federal Grand Jury’s protection for innocent
citizens.
I. A Grand Jury "Master" or seme objective person should
control the Grand Jury rather than the U.S. Attorn^,
firr? whan the Grand Jury was originally supposed to
provide objective protection for the innoo^t citizens
under investigation. Under the current operation of
Federal Grand Juries, the U.S. Attorn^ essentially
, exercises totalitarian power over the Grand Jury system,
deterndning who will appear, what questions will be
asked, when the Grand Jury will meet, preparing the
indictments for the Grand Jury to "rubber stanp" and
generally using the Grand Jury to legitimize the dubious
as well as the legitimate actions of the U.S. Attorney’s
Office.
-over-
htll KH HKH
jHN 'd-J ’ y f'
. I 1
- 2 -
.For in July of 1985 » th« Psnniylvania Stats
'Ttsaaursr through his attorney^ asked to go before the
Grand JUiy under oath and explain the entire CTA matter
under Investigation as he knaw it and answer any and all
questions from the mni^s of the Grand Jtry. Ihe
Treasurer's rei^st had to be made to the Acting
Pennsylvania Middle District U,S. Attorn^, Janes Vtest^
rather than the Foreman of the Grand Jury* As a
statewide elected public official # the State Treasurer
was a "big pelt". Acting u.s. Attorney Msstr of courser
, r denied the request. Jhus, the prosecutors the Grand Jury
historically was to protect innocent citizens from, ctm
, a" prevent them fron appearing befc3»re the Grand Jury. The
U.S. Attorneys must be removed fzan their current pea>
sonal "choir leader" relationship with Grand Juries as
oeyz aspect of creating a true system of Justice In the
tTnitad States.
II. Another reform for Federal Grand Juries vK^d be to adopt
the Tfodification many other entities nw use by permitting
the witnesses' attorney to sit in the Grand Jury Boon.
The current practice of requiring the witness to leave the
Grand Jury Rocri to consult his or her attorney in the hallway
outside the Grand Jury Rocm is inefficient, tlme-cwnsuniing
and leads to disjointed testimony and proceedings.
J9N £3 ’87
FBI PH HRH
PR6E . 1 2
AmOMEl^ #4
REFORM IHE ** JUSTICE” SYSTOM - ABOLISH FBI BONUSES (Bounties) flftS ”Leaks”
One of the nost shocking things revealed during the ”CrA” investigation is
^t ”old West style bounty hunting" was rot totally abolished in the 1800*s. It
has resurfaced in the 1900*$ in the fonn of bonuses paid to the already well “paid
FBI agents when their investigations lead to indictanents and/or convictions.
Indications are that the "bounties" vary according to the type of case -- whether a
'big pelt" is involved, etc, .•
It is very difficult, if not iirpossible to obtain information regarding these
payments, even of most general type (such as the total amount paid the agents
of a particular office over a 10-year period) even under the provisions of the
Freedcin of Infonwtion Act.
It's not surprising, since the pablication of the "bounties" or bonus payments
to FBI agents would create an uproar fran the public thinks the FBI see)cs truth
and justice rather than "big pelts" and bonuses.
I. The recarmendation is obvious. Abolish all bonus or
"bounty" payments, rewards, awards or whatever to FBI agents
other than their normal generous canpensation. Until this happens, I
suggest that the Federal Bureau of Investigation be renamed the Federal
Bountyhuntere Institute.
Another prevalent practice of seme FBI agents is the "leaking" of secret Grand
Jury material and investigative information. Practically anyone closely involved
with the CTA case in Pennsylvania can identify the agents in the Harrisburg,
Pennsylvania office of the FBI who are knwn to "leak" information.
During the CTA investigation one FBI agent was observed having lunch with a
menber of the press. That member of the press then wrote a series of articles that
contained information about the investigation that was un)ciown to anyone else at
that time.
On another occasion, a Treasviry Department anployee v^x) had just appeared
before the Grand Jury was looking for a bathroom. He rounded a comer in a hallway
and discovered two FBI agents a*=*»ociated with the investigation talking with
another member of the news media.
On yet another occasion ny attorney held a meeting in Washington with
ppparttnent of "Justice" officials, including one fron the Harrisburg office. The
meeting was confidential. A few days later press reports appeared in Pennsylveuiia
giving details of the meeting -
II. Any FBI agents or other "Justice" Department staff members leak secret
grand jury information or any investigative information should be fired and
prosecuted.
•over-
J^hN £3 ’87
38
FBI PH HRA
PAGE
13
N9V 20. 1985
fHlLAOCtPKlA QA ttY WrwS
Cmi^MGION
^Dw jt^Hepdrted sTrying
To Forestall Indictment
By BOB GRQTEVAMT
Oai)/ News $ialf Wnter
llARItlSIlUKO - llio nMorncy for
s^atc Trcosurcr It. UuUd llwjcr met
wiih US. Justice Department offi-
cials last week in an ellori to liuli a
possible indictment nK^iitst Dwyer
in the Cotnptiicr Teclinnldgy Asso-
ciate* Inc hribery scandal, sources
have told the Daily News,
Neither Harrisburg lawyer Paul J.
Kill ion. Dwyer's defense attorney,
nor acting U.S. Attorney James J.
West, whu isdirecUngtUe CTA inves-
tigation. would confirm or deny the-
meeting occurred.
“It woiilJri’t m;iKc for tnc to
lalk about if. If it ilid otciir,’' suid
Ktllhm. a former federal and state
prosecutor.
However, sourcDs r.vmiliar with the
CTA investigation said the meeting
tasted Several Itniirs at Justice De-
partment hcad<iuaricrs In Washing-
ton on Nov. i2
One person w*ho is ch'sc to the case
but who refused to be quoted by
n>*mo said KiJIion's action was not
unprecedented, and that such direct
hi^h lcvel appeals in federal crimi-
nal eases are gonrraity re^i rvcd for
"high pro I lie" cuHS
.Several '*hii»h-ranMng" dcpari-
went officials attended the meeting,
the sources .sanl. Their ideiittlics
could not be learned-
Source.* sgid Killum urged that o .
federal grand jury investigation info
Dwyur’s handling of the CFA con-
tract be druptkrJ because of insuffi-
cient evidence to return an indict-
ment against ihe treasurer.
Kill ion argued his client .should j
not be indicted bccmise the govern-
ment had liltle or no lesiiinony to
support the allegations of John Tor-
quato Jr, CIA’S former owner and
the conhsced masicrmind of the
scheme, sources wnd.
Torquato, formerly of Johnstown,
Pa. is one of five people who have
pleaded guilly or l>ccn convicted <i(
participating in a conspiracy to bribe
high state olfUTi:il.s. including Dwyer
and Altorne'y Central f.oRoy S. Zim-
merman. to w in acoutr.ut worth ?1 k
millinn without benefit <vf comjKti-
live bidding.
Dwyer awarded the Contract to
CTA in May 1^84. but canceled it two
months ^^ 1 cr .after Icarnirg the Fill
was looking into bribery allegations.
' ' * • Dwyer lawyer
•!'! requests end
lawyer for sinie Trensurer R,
Budd Dwyer nski'd u .S. Justice
Department niflcinls to drop a
grand jury investignlion into his
client's handtiuK of » $4.6 million
contract, a publi.shed report said.
Dwyer’s atlorw.v r.inl J. Kil-
lion met with aclin#? U.S. Attorney
James J. West and other “high
ranking” liepartment offtcials on
Nov. l2 at Justice Department
headquarters, the Philadelphia
Dally News reported in Us
Wednesday editinns.
Killion and West would neither
confirm nor deny the meeting
occurred, the newspaper said.
The newspaper quoted sources
familiar with the Computer Tech-
noiogy Associalts Inc. investign*
(ion as saying the meeting lasted
several lK>urs.
‘it wouldn’t mnke sense for me
to talk about it. if tt did occur.”
said Killion. a former federal and
state prosecutor.
Killion urged that n federal
grand jury investigation into
Dwyer’s handlins of the CTA con-
tract be dropped becau.^e of insuf-
ficient evidence to return an
indictment, tlie newspaper
reported.
The defense attorney said the
government had little or no testi*
mony to support the allegations of
John Torquato Jr , CTA’s former
owner and the alleged master-
mind of the scheme
One person clnse to the bri-
bery-conspiracy ca^ie said such
direct high-level apj)ea|s in fed-
eral criminal case.s arc gonor.illy
reserved for “liigh iMurde" ciwos.
Five people, including Tor-
quato, pleaded guilty or were con-
victed in the scheme to win gov-
ernment contracts for CTA
through bribe offers. I
Dwyer awarded a state con- ^
tract (0 CTA in May 1984 . but can- j
celed U two months later after
teaming the FBI was investigat-
ing Bliegsttoor of Bribery.
' Commonwealth of Penna^l^anla «
Office of the Stote lyeoeurep
RoMiebupg
m auoo owvi^ itiao
From tht- time R, Budd Dwyer became State Treasurer in 1961
he has been responsible for transforming the an t iqua ted / outmoded
manual processes then employed by the State Treasury Department
into a modern operation for cash management, investnient, and securi-
ties management and control. This has been accomplished through
the selection of a highly competent professional staff, updating
the Department's processes through the installation of 20th Century
s tfi te^of- the-art equipment, and implementing new practices end
procedures .
A brief reference to some of the major changes and innovations
of the Dwyer administration are as follows*
1 . BALANCED THE STATE * S ‘’CHECKBOOK**
Dwyer's administration balanced the State's accounts with
the 26 active State Depository Banks for the first time since 1935.
This was accomplished in approximately the same manner as individ-
uals usually balance their checking accounts.
2. ELIMINATION OF $119 MILLION DAILY IDLE BANK BALANCES
In 1980 and prior years, the Treasury Department was never
exactly certain how much rrioney was needed in its various bank ac-
counts to clear the state checks each day, nor how much money was
available for investment. Such uncertainty resulted in excess
balances with the Depository Banks and an average of §119 million
uninvested each day. The elimination of these idle balances through
the use of new, computerized operations, brought in $19.5 million
in interest income to the Commonwealth in the first year.
3 . installation of a CQMPUTEftIZED INVESTM E NT ACCOUNTING SYSTEM
In 1982, Dwyer's administration replaced the Treasury Depart-
ment's antiquated, almost completely manual investment operation
• with a computerized system to provide up to the minute access to
. tJie financial markets. The Bureau of Cash Management manages rore
• than $4 billion in short-term investments, with an average day's ,
• work involving transactions totalling from $100 million to $200
million. Under this new investment system, the Commonwealth has
earned nearly $ 3 billion in investment interest ,
JAN 23 '87 6:40
FBI PH HRR
PAGE . 15 ^
^r«ge 2
4 . DEVELOPMENT OF AN AUTOMATED SECURITIES MOVEMENT AND TRACKING
sy^'em ~
The Trtdtury Department monitors and safeguards over $16
billion in securities 'for the various retirement systems and state
agencies. In 1981 and prior years* the movement and trading of
these securities was restricted by the outdated* manual process
in which they were handled. In 1983, Dwyer developed the Securities
Movement and Control (SMAC) system which automated the transfer
of securities through a book entry system, thereby eliminating
the physical movement of the securities and enhancing the revenues.
During the first year under the SMAC system, the Treasury Depart-
ment processed ever 13,00u trades as compared to only 2*200 in
19fcl .
S. • • ESTABLISHED TOLL-FREE WASTE LINE
Dwyer’s administration established a toll-free WASTE LINE
for citizens to report abuse* misuse, or fraud involving state
funds or to make money-saving suggestions. The WASTE LINE has
received nearly 4.000 calls and has resulted in the savings of
millions of tax dollars and several arrests,
■6. rROrESSlONAlIZED AND DE-POLIT tCl 2EP HIRING PRACTICES
The previous Treasury Department adminis trat ions ' s employment
applications required political sponsorship of an applicant by
the county or local party as a prerequisite for hiring. Dwyer
instituted non-psrtisan hiring practices, which stressed the pro-
fessional qualifications of the applicant and eliminated the re-
quirement for political sponsorship on the employment application.
7 . crackdcv;n on kelfare fraud
Dwyer’s administration actively worked for approval of Act
75 of 19B2 {Welfare Reform Act), which authorized the Treasury
Department's Bureau of Investigations to investigate and collect
restitution from welfare recipients who fraudulently requested
and received duplicate public assistance checks. Implemented in
1962, Dwyer's crackdow'n on welfare double-dippers has reduced wel-
fare fraud by ninety percent and has saved the Commonwealth over
a million dollars annually in erroneous payments. Additionally,
the Bureau of Investigations has recovered over $800, OuO in resti-
tution from people who took advantage of the welfare system.
8. CREATED BUREAU OF CONTRACTS INFORMATION
Dwyer's administration implemented Act 244 of 19B0, which
required Commonwealth departments and agencies to file a copy of
all contracts involving an expenditure of SS.OOO or inore with the
Treasury Department, The Treasury's Bureau of Contracts Information
has the sole responsibility of receiving and processing those con-
tracts end making them available to the public.
JAN 23 ’67
FBI PH HRA
PAGE . 16
l40
rage 3
9. HIRED AND PROMOTED WOMEN AND WINQRITIES TO TOP MANAGEMENT
POSITIONS
Dwyar^s administration employment policies have hired and
promoted women and minorities for top-level management positions
for the first time ever at Treasury, to replace an inherited top
management team which w’as exclusively a white, male entity. Female
and minority employees now constitute six of the twelve bureau
director positions.
JO. JNSTIT'JTEr ZIP CODE PPESORTINC PROCEDL<RES TO REDUCE POSTAGE
CCBTS
The Commonwealth has saved more than a half million dollars
as a result of Dwyer's administration instituting rip code pre-
sorting procedures. The Treasury Department has been established
as a clearing house for mass mtailings by providing this service
to other Commonwealth agencies, at a savings of four cents per
document mailed.
U . CONVERSION TD PAFEP CHECKS
In 1985. Dwyer's administration replaced the cardboard check
system, with a new state-of-the-art system of tamper proof paper
checks that saves the Commonwealth over $100,000 per year. This
conversion to paper checks enables the Treasury Department to print
30,000 checks an hour, nearly twice the production of the old
cardboard check system.
12. REDUCED BORROWING COSTS BV ISSUING TAX-EXEMPT COMMERCIAL
PAPER
Dwyer's administration proposed legislation, (Act 63 of 1984),
which euthorired the issuance of tax exempt commercial paper, as
a supplement to tax anticipation notes, starting with fiscal year
1985-86. The use of commercial paper saved the Commonwealth approx-
imately $1.4 million in fiscal year 1965-86 alone,
13. CREATION OF A TREASURY INVESTMENT POOL
Dwyer's administration consolidated the 91 separate investment
portfolios into one actively managed pool, similar to a mutual
fund. This $4 billion pool enables the Treasury Department to
make larger investments at higher rates of return, generating addi-
tional interest income. Conservative estimates project an increase
Of $10,4 million annually in investment income,
14 . INSTITUTED A QUANTITATIVE BANK MANAGEMENT SYSTEM
Dwyer's administration instituted a quantitative bank manage-
ment system to assess the performance of each of the Commonwealth's
28 active depositories. The banks are ranked according to the
quality of services provided and the costs of those services,
so thet the 6U0,(.>U0 checks written per month are assigned to those
tanks in the most cost effective way possjbZc,
J H N
■ o r '
0:^+1
r D
r n nr^n
' ESTABLISHED A BUREAU INTEI^NAL AUDITS
Dvy«r*> Administration •ttabXished tha Bureau of Internal
Audits to inform management cf the strengths, weaknesses or lack
of various internal controls, to report on the economy and effi-
ciency of Treasury operations, and to make any necessary recopipien-
dations to enhance these operations and their overall contribution
to the effectiveness of state government.
OTHER ACCOMniSHKENTSt
---developed a Treasury Department initiative, in conjunction
with the National Center for Missing and Exploited Children, to
help identify and locate missing children. Each month, the Treasury
Department inserts photographs and descriptions of missing children
in the paychecks of its employees and in the monthly annuity checks
of the state retirement systems;
reduced the backlog of outstanding unclaimed public assis-
tance and unemployment compensation benefits from approximately
eighteen months to about six months and fifteen days, or approxi-
mately two weeks after the benefits are available to be reclaimed.
This has resulted in tighter accounting control and improved availa-
bility of funds for investment;
designed and implemented **Operation Coffin Caper" in con-
junctions with the Public School Employes* Retirement System and
the State Employes' Retirement System to cover annuity benefits
paid on deceased annuitant accounts. This novel program has re-
covered ever $200,000 in erroneous benefit payments;
actively supported legislation and prepared for the elec-
tronic fund transfer (EFT) system of public assistance and food
stamp benefit issuance. The EFT process maintains this Treasury
Department in the vanguard of similar financial institutions in
adopting technological innovations;
developed a system for direct deposit for state employee
paychecks and retirement system benefits.
investigated over 1,500 claims of lost, stolen, or forged
Commonwealth checking totalling over $600,000?
---in conjunction with the Department cf Public Welfare,
completed the necessary design and implementation steps to bring
fhe printing of public assistance checks into the Treasury process,
to reduce the cost of check stock and facilitate the verification
of check totals. This transfer to Treasury will result in a savings
of approximately $150,000 per year;
as one of three issuing officials, refinanced two of the
Commonwealth's high interest General Obligations Bonds at lower
rates to save millions of dollars in interest payments;
FBI PH HRH
PfiGE . IS
JAN
’ 87
|4 1
Page 5
— ^itrongly aupportad the $190 million bond iaau# which
brought thouianda of jobi and infrastructure improvements to
Pennsylvania t
---discovered $3»7 million in miidirected interest earnings
from the unemployment compensation fund, which were mistakenly
credited to the general fund. This discovery was at a time when
the unemployment compensation fund was being drained by a record
number of unemployed workers and the federal government was de-
manding payments from the state fund.
JPN 23 '87
FBI PH HRfi
PPGE . 19
M •gD5 DWVCI*
e» ttNNlH^ANtA
Cpmuionweatth of Penno^^tr^ulv
Offtop of tlio Stole lyeoourer
BopHoburg
11180
January 22,1987-' Ires? Statement by State Treasurer P. . Budd Dwyer
At long last I can 5|.eaR out. I wanted to do this during
the early stages of the TTA matter iut I was told by advisers
and attorneys to wait until the investigation was over. Then I
was indicted and again wanted to speak out and was advised to wait
until -I was acquitted. But our legal system was orchestrated so
that it did not work in my case and now more than ever my conscience
dictates that I must speak out.
Nuch of what 1 will say about certain persons and our legasL
system is not pleasant but it is all true, based on my own know-
ledge, based cn official records or on what people I knew and
trust have told me. I-.uch of what I say will be answered by howls
of denial and derision tut I urge you to look behind those howls
to check cut the validity of my statements.
I apologize for the typing and punctuation and if my remarks
seem liEjcir.ted it is because of time and logistics,! can cover
only a few of the thousands of things I would like to say.
first, I want to thank ray loving family, my loyal friends,
supporters and employees and all those who have stood by me during
this terrible 2i year ordeal. 1 thank them for their support , their
encouragement and their prayers. I have not let themHior violated
my oath of office. Our current legal system has let me down end
cries out for reform so that other innocent people do not have to
go through what my family and I have been through and will go
through for the rest of their lives. I hope and pray that after
this press briefing is concluded you’ll want to help create a
Justice System here in the United States.
The past 2i years have been like a nightmare or life in one's
ov*r. twilight zone for my family and me. Zven now, as I’m speak-
ing to you, it would not suprise me to wake up at hoce in my bed
and learn that the entire matter was just a horrible nightmare;
an;l really happen.
I»m very prctjd cf the job I*ve done during my six years as
Treasurer cf lennsylvania. It is ironic that although my staff
and I have transformed the PepartTneuti from a financial antique
into one cf the most modern in the nation, earning and saving
hundreds of millions of dcllare each year, most of the publicity
We*ve received and what 1*11 be remembered for is in regard to TTA.
I once again declare to you ’'that I am totally innocent. I
have served in public office for over 22 years and it is ny cb-
servatior. that nearly all public officials are honest, sincere and
trustworthy. I state with pride and a clear conscience that I am
cne cf the most honest public officials to ever hold office in
this commonwealth. I invite you, challenge you and beg you to talk
with my Treasury Department employees, The commercial bankers and
investment bankers with whcm we do business, my former colleagues
from both parties in the House of Representatives and the Senate
and their staff, members of the Harrisburg lobby corps since I’ve
been in pclitics, my high .-school, college and law school classmates
and professors, my former ccnstituents in Crawford, Kercer ana
eastern Trie counties or anyone else who knows me. Ask them
about my honesty and integrity.
■f anyone thinks T would jeopardize my good name and reputatizn,
uamage rry family and risk all we*ve worked for and stoci for ever
the years for 3?CC ,C0C,90G, let alcne 33CO,CCC, T2C0,C0C or
;10C,CCC they are crazy. I started rny professional career as a
school teacher tut a significant .event occured in my life in
when I was selected as western Crawford County's Community
Ambassador to Icland. living under s Tenmunist government made
me realize for the first time the full extent of the freedoms ano
opportunities we have here in the United States. I resolved that
I would work to preserve and improve our system and that is why I
entered politics in 19^4 and have spent the lest 22 years
fufiling my resolve.
i-y wife and I have never aspired to be wealthy. We cnly
wanted to ic meaningful and enjoyable work, serve cur fellow man
and provide a secure lifestyle fer our children. I*ve had msny
FBI PH HRR
PfiGE .21
JPN 23
’ 87 *
M3
of^rrtuni ties t: r.a/.e big .rxr.ey in the {.rivate sector or run fcr
higher paying Federal office anJ I»ve turned therr. all iown
I enjoyed xy work in State /overnir.ent .
On January 2C,l96t I proudly took aiy oath of office as
lennsylvanias* 69th State Oreasurer and in rry first re.tiarks as
Treasurer* entitled "Cnly in America", I joyfully marveled that
only in America ccull a Rid from Blootaing Valley with no political
legacy and no political base be elected to statewide office in
this ':omr.or.wealth of almost 12 million people. ::ow, six years and
two days later, the. jcy has turned to pain and sorrow and the ir.arve
to disillushior.r.ent and disgust. '
I was able to be elected Treasurer because the political
system that was our forefathers goal 210 years ago has developed
and matursd and continues to improve with virtually every election
as a wider cross section of society is elected to public office.
For example when I was first elected in 1964 there was only one
other member of The general Assembly in his twenties and only one
member of the Senate in his thirties,
But I am here in this situation today because the Justice iys-
tem that was also cur forefathers goal has eluded develcpmen:
during the past 2iC years and the citizens of the United States
have, instead of a justice system, a legal system that is very
similiar tc the legal systems in aaticns around the world that
cur national leaders are fond of criticizing fcr denying human
rights > legal process and justice,
r stand before ycu today as an absolute example that in *195"
in the United States of America our legal syster.. car. be used fcr
political persecution and that innocent people are found guilty,
>.ords do not exist to express the feeling of disbelief, shook,
numbness, illness, dismay and sadness for my family and me when
the Judge read the first "guilty". ::o one could possibly imagine
that feeling except other innocent persons who have been ccnvicted
of crimes they did not commit. That moment, and the days that
fellow aa friends and fa.mlly make calls, send nctes or come to
visit to express disbelief and sympathy is as close as one can
come to dying and attending their own funeral. In my case, it \\&s
not cr.ly the destruction of my life but the destruction of every*-
JAN £3 ’87
43
FBI PH HRA
PAGE. 22
thing : believei, ani taug.ht r.y students ar4 fdr.Uy afccut regariir.g
thie country. I had teen very naive. I had fceen raise! to believe
that if : obeyed the law and was a good citiren that I would never
becoire entangled with otr legal system.
Then in February of l&3d, another significant event occurs!
In my life. In conformity with lennsylvania law, i refuse! to pay
the travel voucher for Krs. Dick Thornburghs* trip to Furope an!
Governor Thornburgh .told Bob Asher an! others that he wculcl
’’get Dwyer". Thanks to ycu, the ir.edia, Governor Thornburgh has
s very positive image but if his’ staff had ever let you get
close to hi.T. you would have found a short temper an! a vicious#
vindictive personality. Governor Thornburghs* .resolve to get me
increased when "Gin.nyg^teV’ followed by"Chauffergate" in ::arch,
April and ^:ay of 1964 which was properly brought to my attention
by reporter v.ally p.oche of the I hiladelphia Inquirer . Then cur
recent Governcr began referring to me as "The Fat _k", which
can be attested tc by several people.
Some of you may recall that Governor Thornburghs’ first attempt
to get .me was a mislead in.^ memo from Secretary of Revenue Scheiner
to Secretary of Administration Dickman in late April cf 1964
criticizing rr.y departments’ short term inveEtm.ent cf the State
Ir.plcyees Retirement System, finis, which was leaked to the media
in "white envelopes", .‘.hen that backfired# the second attempt was
the so-called "3i ttenber.der letter" sent to me cn Ray £4, 1;64# sever,
weeks after the PICA Recovery legislaticn was signed into law and
two weeks after the contract was signed. The letter contained
distorted financial information, which was brought out at the trial
and copies of that letter were also given to favored members of
the Capitol Tress Corps. And then the CTA investigation by the
U.S. Attorney fell into their laps and they had the vehiile,
Jthat if steered skillfully would really "get me". As a Thornburgh
friend and Cabinet member said to his, then, Iress secretary,
"...the Rat ^k is going to get it now,"
r-y major criticism cf ycu and ycur colleagues in the le.rr.ey-
Ivar.ia news media in regard to CTA» has been your failure through
fear, intimidation or perhaps cne of the reasons discussed in the
chapter entitled";curnalists f:r the ircsecuticr." in the bcOK,
4
FBI PH'HRA
PAGE . 23
JAh’l 23
' 87
8 : 44
The Neva At Any Cost , to expose the close connect* or* between
Governor Thornburgh ar4d Acting U.St Attorney Ja:t!es "Jimmy” West.
It is a matter of public' record Wests flret job after hie
Judicial clerkship was to be hired by then l*,3* Attorney Dick
Thornburgh as an Assistant L‘.S> Attorney in the western District
of lennsylvania in August of 1974. I,t is also public information
that Wests* second Job was to be hired by then Grvernor Thornburgh
as a lennsylvania Deputy Attorney General on Apr*.l 2, 1979.
Then after Iresident Reagan irook office in ' rBl , the Thornburgh
group tried to take over the U.S. Attorneys offi:e for the Middle
District of lennsylvania -by having another two tire Thornburgh
appointee, Henry Barr, appointed as U.S. Attorner-. However, 5arr
was not recoTTjnended by the Merit Selection Coar.irtee and David
Dart Cueen was nominated and confirmed as the U.S . Attorney.
But Assistant U.S. Attorneys do not have tc go through the
Merit Selection Committee Irocess and in July of '982 the
Thornburgh group succeeded in having none other man James "Jimmy"
V.est named First Assistant U.S. Attorney for the Middle District
of lennsylvania with his office right across Capi'tcl Bark from
governor Thornburghs office.
It was well known in campaign circles in th* fall of 1964 ■
that governor Thornburgh and his top staff members were desperately
trying to have U.S. Attorney Queens* announceme - 1 of the first
CTA indictments delayed until after the November ^,1954 General
Flection, They knew, through West, that Zimmerm«a>r.s name would be
promiently mentioned in the indictment for the f:^rst time. They
were afraid a pre-election announcement would cause Zimmermans*
defeat and that Allen Ertel as Attorney General w.:uld conduct
an investigation of the Thornburgh Administraticrs * sweeth€.?\rt ,
no-bid legal contracts* Queen went ahead with his announcement on
October 23, 1964 and Zlcnerman almost lost the election. The effort
to remove Queen as U.S. Attorney began immediately because he cou^d
not be cControlled, After a heavy political barzle Queen was
"promoted" to a position in the U.S. Treasury Dep-artment . It
was not the Solicitors position which he had so'-rht. When Queen
departed fed' Washington in January of 1935# Jaie* "Jimmy" West
5
JMIN C.O Of o;<4*4 t- e 1 rn okh
W88 nar.erf as the Acting I/.S* Attorney by a 4-2 vote of the Federal
Judges in the Middle Z)istrict and Governor^^^^^S^^Sis lackey in
charge of the CTA investigation and as we noWknow, my fate was
sealed .
Those of you who are politically astute are questioning me
at this point because, while you realize why Jick Thornburgh
wanted me indicted and convicted, why would he want his friend and
1532 campaign chairman,^ rob Asher* , to suffer the same fate. The
answer is that Bob Asher had also crossed Dick Thornburgh, in
late 19S3 and 1554 Thornburgh and some of his top staff members wanted
Pob Asher, who by then was the Chairman of the Republican Ctate
Committee, to use Republican State Committee funds for them to
travel .round the country promoting Thornburgh for a spot on
the 1588 Republican Mational ticket. Asher got independent and
refused. Thornburgh responded by removing the Governors Club from
the auspices of State Ccnunittee in order to raise his own funds.
Bob Asher immediately replaced it with the new Commonwealth Club
and used the Governors Club mailing list for it, thus partially
foiling the Gcvernors* effort to raise his own funds.
••another Thornburgh-Asher battle occured in the fall of iCcU
when, £s I’ve already indicated, Thornburgh and his crcnies
were panicked at the prospect of Allen Trtel being elected Attorney
General. Cn the night of October 4, 1584, at a private meeting
fcllowing the State Committee Fund Raiser honoring Drew lewis at
the Rellvue Stratford in ihiladelphia, Governor Thornburgh and
seme of his key staff members and cronies, with some party leaders
present, demanded that Bob Asher lay off most of the 23 or more
staff members at Republican State Committee and give the mcney
saved in payroll costs to the Rcy Zinnierman campaign. They also
wanted Asher to use the remainder of the money that had been
budgeted for the three statewide campaigns used exclusively for
P.oy Zimmermans* campaign, Asher refused both requests.
Thornburgh and his croniee mended their split with Asher
briefly in the fall of 1555 when they used r.sher to help them, in
their effc^rts to make Thornburgh a viable candidate against
senator Fpecter, .vhen that effort failed they broke away frem
6
JAN £3 ’87 b;4ti t- t! 1 rn nr.n
Asher aijain. .Uncidentally , one of the major unpublished reasons
Thornburgh did not run against Specter is that Thornburghs* key
staffer v»as told by Specters key staffer that if Thornburgh ran^
his role in the CTA affair would be a major issue in the campaign.)
you now know, in case you*ve ever wondered, why, out of all the
politicians nar.es on Torquatos* spread sheets and other records
and all the testimony about bribes, gifts, favors and contributions
to politicians from Smith and Torquato, the only two politicians
to be indicted and found guilty ‘are Eudd':Dwyer and 5ob Asher.
The position of l‘.S. Attorney, even on an ’’Acti.ng”. -basis is
one of the most powerful in cur government. The L'.S. Attorney
is the scle determiner of what cases will be pursued and what
cases will be dropped in his district. The quality of the "Justice”
system in each of the 94 Federal Districts depends upon, the
honesty, objectivity, integrity and personal goals and interests
the l‘.S. Attorney in each district. I, S. .Attorneys love to
selfrighteously prcclaim that they will "follow the evidence
whereever it leads". The fact is that it is the exact opposite
that usually occurs. The V.S. Attorney and the involved law
enforcement agents will determine early in a case who they want
their "targets" to be, and then develop or fabricate evidence to
indict sr.i convict them.
If evidence can't be de^’^eloped it is fabricated by using the
currently legal techniques of lies, deals, leaks, threats, imr.unity,
harrassment, rumors, abusing the plea bargain process and virtually
every other technique used in authoritarian nations with the possible
exception of physical torture. Another technique is to stretch
cut an investigatio.n so long that legal fees financially bank-
rupt their "target" cr mentally break the "target" cr family
members so that he has no alternative hut to plead guilty to
something and perhaps provide perjured testimony against other
"targets". With unlimited taxpayer dollars and virtually un-
bridled power, is it any wonder that the L*,S, Department: of
"Justice" boasts a ^ 5 % conviction rate. Once the V.S. Attorney
deciles, regardless of his motivations, who his "target" will be,
the odds are overwhelming that the prosecution will "get" him,
7
XqN 23 ’87 ^:46
FBI PH HRR
PPGE . 27
the project in-house, when I had theft contact the Pennsylvania
School Boards Association to see if they could do the project,
anl when they were in the process of recoftmending to fte that
Arthur Young do the project tefore Torquatos' last rrinute effort
to get 3ave Kertert to provide false information to the TasK Force
regarding immediate credit which impacted so heavily on the all*
important tire-value-of-mcney concept which resulted in the TasK
Force recommendation to me that CTA be awarded the project,
Smith admitted this at our trial tut apparently it went ty
the jury. His attorney, John Rogers i^arroll testified at cur trial
that Bill Smith had "solemnly told he and Tom Carroll that he had
lied in his "offers of proof" and that when he testified at his own
trial that he had not bribed me it was the truth. And John Rogers
Carroll added, "V.e had no evidence to the contrary," (Seme observers
think that Smith and Torquato were creating phony records and making
statements about several hundred thousand dollars in payoffs just
as Torquato had successfully done in regard to the Allegheny County
contract when he made statements and created phony records in-
dicating he was paying ?‘IC2,0C0 in bribes to Allegheny County officlsls
$0 he wouldn't have to lay his employees comm.issions on that amouni.
In reality he was misleading his employees, paid no bribes and put
the VOZpCZ in a Swiss lank account as he has admitted. However, I
think the foregoing Ir.ith version is the accurate 'scheae in this case,]
Thus, although fm.ith never bribed me you can see hew Smiths
telling Torquato that he had bribed me, unforseeably , benefited beth
cf them in their "offers cf proof" in the fall of 1^54 and especially
benefited Smith in hie final "deal" with Acting V.S.^V.est in the
fall of 1985.
V.hen the CTA investigation began in July cf 1994 beth fmith
andTorquato knew they had legal problems for bribing Dave Herbert
to provide false and incomplete information to iny FICA Recovery
Task Force, Smith knew from his limited criminal law practice and
Torquato learned from his attorney(according to their Testimony)
that l'.$, Attorneys and FBI agents are interested in big pelts.
And there I was, cut on the end cf the limb with my signature
cn a large, complex contract that I had signed in good faith
based, on the recommendation of my task force. In turn, the tasK
force had made the recommendation to ce in good faith. They did
one vay cr whether they ere gutlty cr not. Cf course,
^the apf ropria tff West to have done, as I*ve described in
Attachrert 1 cf my letter tc the Judiciary Committees, would have
teen to recuse himself from the CTA investigaticn, tut their goal
had teen ‘ust the opposite, to seize control of the investigation.
Che entire CCA case as it applies to me, hinges on one meeting
in March of 1^84 with Eill Smith atcut which he has tcld two
versions, one truthful and the other in exchange for immunity for
his wife and other consideratiorf for himself, Following is
Bill Smiths* truthful story of v?hat really happened, as he
tcld it to my attorney, Bob Ashers* attorney and Tom Carroll who
is one of Smiths* attorneys, on Flarch 12,1935. Ky attorney
imjred lately taped the information prcvi-ied by Smith and it was
transcribed into a 5syjmemo the following day. Since ,the memo is
the property of m.y attorney and contains other information I regret
that I cannot provide you with copies of it but I can relate tc you
the crucial information it contains in regard to me and Smiths*
meeting with me in March of 1984.
Smith explained to the attorneys that it was constantly
Tcrcuatcs* mindset to offer money to people in crier tc incur an
cbligaticn. As Smith testified at cur trial, Torquato was very
upset t^at a bribe was not offered to me at the March 2,1954
meeting a? the .'’arriott, Torquato kept pressuring Smith tc meet
with me again and offer a tribe in exchange for the contract.
Smith aid meet with me sometime later in March but lid net offer
any bribes. Smith told the attorneys that at no time did he raise
the possibility of offering money to^because he knew it would be
inappropriate and that I would have thrown him cut of my office.
(He testified at our trial that all along he felt TTA was gcoi
enough to get the contract without offering bribes.) However,
after our meeting smith led Torcuatc tc te^eive that he had bribed
me £0 that Torquato would stop pressurihg him. Thus, when
Torquato entered my "code name" on his spread sheets and tcasted-
tc various people about campaign contributions to me , he really
thought that Smith had bribed me and cf course Smith continued tc
let Torquato think that I had been bribed.
It is no wonder that testimony indicates that Torquato was
perplexed,' frustrated and furious when my Task Fcrce wanted to do
S
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• cf r
r e i
n MKH
KHUt . ce
not know that John Torquato had lied directly to John Wellington
regarding cost figures or that ScJith and Torquato had bribed
Herbert to lie to Wellington and Ihenecie regarding iirmediate
credit which impajctted cn the tine value of noney. Hut I was a
"Tig lelt”, governor Thornburgh was out to"get'* ne and his
lackey, Jares West was heading up the CTA investigation.
\oreover, Torquato really thought Snith had bribed me and
had hia spread sheets to prove Smith could slightly alter
the true stcry of our Varch meeting and say he bribed me* since he
had told Torquato that he had. Thus it was easy for then tc separ-
ately fabricate "offers of proof" even though the details conflicted.
Viest ignored that fact and had his bottom line desire of havin^T
two people say I*d been bribed, despite all the evidence to the contrar
According to the search warrant for Torquatos* office, he had
more legal exposure than Smith so he was willing to plead guilty
to one count while Smith wanted complete immunity in exchange
for his story. Thus Torquato got the initial deal. Hill Smith
was slick though. He not only went to two attorneys with his
"offer of proof" tut T understand he also told at least one member
of the Capitol Iress Corps in the event his trial went tally and
he neeied additional prior verification of his story tc work cut
a futurs deal.
Although I*d done nothing wrong I knew the deck had teen stackej
against me. Still I had faith , that since this is America, something
would occur to saiTe me from m.y persecutors. Hut it didn*t
happen and this is why our legal system desperately needs to te re-
formed into a justice system. It has happened to others and will
happen to more innocent people until reforms are enacted. In
fact the recent January 11,1937 "Sixty Minutes" program described
the case of an Innocent man in Philadelphia who had been convicted
5r.d sentenced to death. Kcw many mere will there be?
In the following paragraphs 1*11 detail some of the things
that occurred to fabricate testimony against me and otherwise
manipulate the case against re. I lease verify these yourselves
and decide whether Acting i,£. Attorney James v.est was seeking
truth and justice or seeking the indictment and conviction cf
an innocent person.
JAN
FBI PH HRA
PAGE . 29
1. The accuracy of polygraphs or lie detectors is a hotly
debated issue. However the l'.S,”Justlce‘’ department relies
heavily on lie detectors in their investigations and maintains
they are very accurate. On about July32^ 1985 my attorney asked
James '.Vest to sign a letter stating that if I passed their lie
detector test he would drcpr.e as a ^^target" cf his investigation.
Acting L’.S, Attorney Ja.Ties v.est refused to enter into the agreement,
2 . Irand Jurys were forced hundreds of years ego as a reform to
protect innocent Citizens from unethical and overreaching prcsecutcre.
In August cf 1965, my attorney asked Acting l\S. Attorney James
Vest if I could voluntarily appear before the ^rand Jury to ex-
plain the entire CTA matter to them as I understood it and answer
any and all questions they ;had. West refused saying he wouldn’t
permit me to make a "speech" to the Jrand Jury. Thus our legal
system has deteriorated to the extent that the very prosecutor who
the Grand Jvry is tc protect citizens from^can in fact deny those
citizens access to the Grand Jury. ( See insert 4 regarding GJ^nd
Jury reforms in my letter to the Congressional Judiciary Committees.)
3. Abuse cf process. On rrovemter 27, 1964, a Treasury re-
partee nt enplcyee was subpoenaed to appear before the Grand Jlry
at the Harrisburg Federal Full ding, When he arri^’ed the Gr and
Jury v;as r.ct even in session that day. The subpeona had been a ruse
to get him to the building so ^est and FFI agent Cefn Jordan could
have a session with him. the^ prodeeded ta make accusations ani
threats in an eff ort"^«^*confirmi^ false information. They go: fed
when they indi framed tfe liTQ-i ■ ^ irhirr^ they had evidence that -ill
Smith had offered to pay off his mortgage if he helped them, ^et the
?ICA recovery contract, because the Treasury Tepartment^SasTa renter
anJ had never had a mortgage. He returned to the Treasury 'epartmer.t
pale and physically 111 as several Treasury Department staff
mejr.bers can attest.
4. leaks cf Tonfidential Information. Cn yonday; July 30, I9r^i
F3I Agent Bcnall: Frlnkley had a luncheon meeting at Casa
P.llloa with a member cf the Capitol Frees Corps. A few fays later
the reporter wrote a series of articles containing previously
unknown information about the CTA investigation .
""n ''ctober 29, 1 9e5jwaV^suip?e^^eJ before the Grand Jury, bhen
he left the Grand Jury he locked for a bathroom. He rounded a
11
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FBI PH HRA
PAGE . 30
^48
corner and there were F5l Agents Sonald ErinKley and Donald
Jordan talking with a Cafitol Press Corps reporter about the case,
On November 12, 1S35 iny attorney had a confidential, private,
meeting in v.ashinjton D.C. with Acting U.S. Attorney James V/est
end V.'aehington based “Justice*' Department personnel. Reports of
the confidential, private meeting were carried in the Pennsylvania
media on ::over.fcer 20 and 21, including information about the meeting
that occurred after my attorney had left.
^‘either Rob Asher, I or our,*ttorneys had any indication we
were going to be Indicted prior to May 15, 1966. I learned about
it as a result cf a telephone call from my Pittsburgh office that
morr^ng reporting that an article in the J Peensburg Tribune
Review indicated we were going to be indicted.
In The Mews at Any Cost the author states, “ in most juris-
dictions it is a crime for a prosecutor to leak grand jury in-
formation, but no one has ever been prosecuted for it since it
would require prosecutors to investigate themselves."
5, The three waytsplit. At our trial, Acting I'. 6, Attorney
James ’Cest came up with a new theory that the mythical 55CC,CCC pay-
ment was going to Republican State Tommittee where it was to be
divided equally between the campaigns of Roy Zimmermer. , Sue
Shanaran ani me. I lease check with Roy Zimmerman and Sue Shanam.ar.
to see if V^est ever checked with them to see if Rob Asher or I
ever told them that they should add an extra J1CC,CCC into their
campaigr budgets.
6. The Tcrquato-£llis "plea bargains". John Torquato and Judy
Ellis were each indicted on 15 counts with an exposure of 50 years
in jail and S106^C00 in fines plus t wo of their corporaticns were
indicted on i? counts with an •additional exposure cf 21C6,CCC each.
As a result of Torquatos* plea bargain V.est recommended a 2year
sentence but the Judge sentenced Torquato to 4 years and a S1C,CCC
fine which still saved Torquato up to 76 years in jail and IS6,CCC
in fines . Kis livein girlfriend-partner Ellis was sentenced to
1 X'dMTH and a 35000 fine, saving her up t? 75 years and 11 months
in jail and :iCi,CCC in fines. Eut Acting l.S. Attorney James
V>‘est was net fi.nished with his favors to Torquato and Rllis. Just
before the Smith-Sto.nernan trial, in which they were to be witnesses,
best dropped all charges against their two corporaticns saving Tor-
quato and Ellis another ?212,0CC in fines despite the fact that
JAN 23 '87 8:<P
FBI PH HRA
PAGE .31
they hadi at least 3450. OCO In Twiss bank accounts,
7- Acting u,£. Attorney Jamee Vests trip to the Bcron
Irison ca^np. V.est and Torquato were upset that Torquato had been
se ntencei to 4 years instead of the 2 years west had recor:.mended ,
In February ,1985, V;est attempted to secretly go to the Boron Jrisao
Camp in California where Torquato was located to put in a goodwe^^
with Torquatos* parole board, littsburgh Attorney Harold 'Jonlel-
nan found out about V.ests* trip, as he said, through Idur.b luck,*’
V.ests* trip was a success and he ^ot Tor^qatos* sentence reduced
from iyears to 22months. l-lease check out what V.est For
Torquato with other criminal attorneys, It*s virtually unheard of!
crmally when a prosecutor appears before a parole board it is to
urge that a felon serve their full term.
3. The Bill Smith leal. This deal sets new records in the
anals cf our ’'Justice*' Department. After his sentencing. Bill
Smith had legal bills of over 720C,000, a fine of 263, CCO and
a jail sentence of 12 years. Acting U.S. Attorney James West
told Smiths attorney that Smiths wife, who is also his law part-
ner, would be indicted unless Smith ’’cooperated”. Smiths wife is
the mother of their 5 year old son and the step -.mother cf other
cm:ith children, Smith is not a lordon liddy and faced with
all of th? foregoing he "cooperated” in exchange for immunity for
his wife and himself, a recommendation from West that his sentence
be reduced to 22 months and a 31C,CC0 fine and if the judge dcesn’t’
agreejV.est will appear before Smiths* parole board to have his
sentence reduced. That wasn*t even a plea bargain. It was just an
outrageous deal that is legal Xinder our current "Justice" system.
Smiths* sobbing statement on the witness stand," I*d dc anything
. to protect my wife,”, and his near fatal attack and emergency
surgery a few hours after he testif ied]j’*'5Sa weight of his guilty
conscience better than anything you've seen on stage , in the movies
or in a TV 3oap Opera.
9. The v.illiamsport trial. Cne of the cost frequently asked
questions before and during our trial was, " VTiy Is the trial up in
V. illiair.sport7 " The answer is , Because Acting l.£. Attorney \James
V.est wanted it in Williamsport, to help guarantee he could convict us:.
13
PPGE.32 •
In tD evivlenceottained or»-way or the other, there.,
are Wo other ingredients a prosecutor needs for a guaranteed
conviction, Cne is a '’house Judge" end the other Is a favoratle
Jury, ?cth exist In v/illiamsport, As one attorney fairiliar with
the situation stated, "Judge. j\uir gives new meaning to the term,
house Judge/’ Judge Kuir is clever though. A casual observer
attending a trial or reading a transcript wouldn"t perceive
his pro-prosecution or personal bias, .but a trained legalifwcfuld
realite that whenever a motion ruling was crucial to the pros-
ecution, such as our change of venue motion. Judge i':uir invariatlv
rules for the prosecution. In our case he sent subtle messages to
the Jury to convict us, such as referring to the Veccrd for the
Appellate Court*.
A few weeks before the beginning of our trial Judge yuirs*
pro prosecution and personal bias resulted in the overturning of
a guilty verdict in the'Salam.one Case by the Third I’.S. Circuit
Court of Appeals. The ruling has been publicized in national pub-
lications such as the January 1987 issue of the A merican -iunter .
Cur case was complex and technical and Acting U.3.Attcrney WiST
needed an unsophiscated, uneducated Jury pool and demongrathics
indicate that the Williamsport Federal jury pod iB; the’ most ■
uneducated in the state* Fven sc, West used several pre-empt cry
challeni^es tc eliminate educated people from the jury. There were
two college educated jurors, one music major, and the other a
psychologist who West had orlgionally knocked off but who he per-
nitted to serve after the defense and news media complained about
his tactics.
logic and a U.S. Supreme Court decision indicate that the trial
should have teen held in Harrisburg. The alleged offenses cccurea
in Harrisburg, Vests* office and the FBI office is in Harrisburg,
the defense attorneys offices were in Harrisburg, the defendants
o.ffices were in Harrisburg, most of the witnesses were from
Harrisburg and those that weren’t had to be transported to Williar^e-
port after flying to Harrisburg. It cost the taxpayers tens :f
thousands of dollars more to have the trial in Williamsport but
of course Acting U.S. Attorney James West wantel us convicted
regardless cf the cost or tactics it required.
14
JHN £3 ’87 8:50 ' FBI PH KRH
PftGE . 33
- '' If you checK the dlef^.'jse itiotion to change venue to Harriscur^,
wMch was opposed by v,est,*\.et ali seven points of a f.S* Supreme
Tourt decision that a w^udge is to consider in making his ruling.
The seven points don *t include Judge Muirs’ convenience or his
ties toward the prosecutions' opposition to our motion so he
ruled the trial must be held in Villiamsport. His official reason
in his ruling was that there weren't enough courtrooms in Harrisburm
despite the fact that witn the state appellate courts, the county
courts and the Federal courts in h;^rrisburg there are more court-
e
r'.;ms there than anywhere else in lennsylvania except littscurgh
ar.i ihiladelphia. (as an aside, check into the Eerrigan trial cf
t:.e I.SjTCs. The Federal government had jurisdiction in dozens of
?*';eral District Courts around the country but the trial was heliin
rirristurg because computer runs indicated the Kiddle District of
^t'nsylvania has one of the most conservative, pro-prosecuticn
:'-ry pools in the country)
10, Rules of evidence: The jury received frequent messages
t: convict us because time after time during the trial Acting
IM. Attorney James Vest presented evidence or asked questions of
witnesses about the CTA convictions of Smith and Stoneman and
T.rcuatc and others who were guilty of conspiring to bribe Herbert
t; mislead the Treasury Department Task Force. Tut whenever the iei*
p-annei to introduce evidence or call witnesses tc testify abc'w.t
t;.% acquittal cf Pittsburgh City Councilman Pobert Pade itone in
the ether TTA trial Judg« Huir ruled that Supreme Court case law
pr^-hibited the introduction of evfdence'of prior acquittals. The
unfairness and injustice of that pro-prosecution decision is
obvious.
Trior tc the trial several attorneys said that it was imicscibl
fer a public official to get a fair trial in lennsylvania because
pecple are eo biased against politicians. However, the acquittal
cf littsburgh Councilman Kotert Hade Ctone in the other CTA trial
ir.iicstes that when a l.S. Attorney seeks truth and justice rather^
than convictions, when the Judge is unbiased and when the jury is
c',r, posed of a defendants jeers from the defendants home area, even
6 p;-blic official can receive a fair trial.
15
JPN 23 ’87
FBI PH HRA
PAGE. 34
In cur case the Acting V.i. Attorney, Jaires ‘i.est, went to
the very limits of our very dubious laws to fabricate evidence
arm Irani]. ula ted the trial arrangements so that he would have a
biased "Kcuse Judge'* and a jury that was not familiar with account-
ing practices, state-of-the-art investment techniques, the value of
computer software' and the political and governmental processes, in
other words, a jury that was not composed of our peers.
According tc articles in the news media the jury did not
abide by their oath cf office or •follow the Judges* xost basic in-
struction, that all defendants are presumed to be innocent. Jurors
were qwcted as saying that they tried very hard to find me innccer.t,
indicating they deliberated with a presumption of guilt, rather
than the most basic principle cf American jurisprudence, the pre-
sumption cf inncnence.
In the third day of deliberations the jurors asked for a
transcript cf John /ellinftons testimcny. John Wellington, as the
Treasury Departments Chief Counsel was the head of the Task Fcrce
that recommended CTA to me and was certainly the key witness as far
as m*y case was ccncerned. The jurors were told that a transcript
W2S not 8 V2 liable but arrangements could be made to read V.ellir.jtcr.c ’
testim.ony tc them. The jury never responded tc the opportunity to
have the testimeny read tc them or male any ether request. They
simply proceeded to find me guilty that very lay. lerhaps they
were in a hurry to get cut for Thristmas.
The Judge had given almost three hours of ccrplicated jury
instructions but the jury did not ask one clarifying question.
They merely rubber stamped all 11 counts against both Bob Asher sn-i
rre. Contrast our jury with the jury in the Smith-Ctoneman trisl
which involved 15 counts each. Pven though that jury was also a
Ailliamsport jury, they asked many questions and found guilt by
Stoneman on one count and guilt by Smith on nine of the 15 counts,
lerhaps the attorneys were right and our Jury was tiased against
us because we were pcliticans,
Regardless of their reason, our jury made a horrible mis-
take. They destroyed my 22 year career in public service and
my life, and did indescribable damage to my family and many ethers .
If
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PAGE . 35
O : D 1 • I- C 1 KM MKH
# •
‘TK« i^ry delivered the final blew to what cany have describei as
the greatest miscarriage of Justice they have ever Known.
Kany people who have visited > called or written to me since
December Ic,i986 are confident that the horritle mietake made by
the Jury will be corrected by the appeals process* this is iirpli^
in the attached editorial from the f^eadville tribune . Infortunatei^
most people, including me up to a few weeks ago^do not understand
the appeals process, ieople generally think all mistakes re-
garding a trial are appealable but in fact only mistakes of law ar
appealable. In u.y case the major mistake was made by the Jury whic
rendered a guilty veraict without having su fficier.t evidence
beyond a reasonable doubt. Despite all their wheeling and dealing
the prosecutions case appeared to be so weak, so cuestionabl**<e
and so ccntradictory that ciy attorney and many c curt room observers
saw no reason to put in any defense.
Unfortunately, under our system of law, the Jurys* mistakes a:
not appealable. As impossible as it is to
cf a Jury. Only the mistakes of law made by the prosecutor and
Juige are appealable and as I*ve already described to you cur
Statutory lawlTcase law is currently so Icose and so unjust that n.y
chances of -a inning on appeal are very slim and even if l wen I
cculi net financially afford another trial.
Icb Asher stands a tetter chance of winning on eppeal because .
5cr:e case law indicates he was improperly tried as "a public
official.
The bottom line is that Sovernor Ihornburgh, Acting V.ij.
Attorney James V.est, FBI Agents Donald Jordan and Ronald Brinkley,
who '‘worked'*the case, Jvdge Halcolm Muir and the Jury have together
totally discredited the American legal system in the hearts and
minds cf thousands of people who know that I arc innocent,
'-ery few victims of our criminal legal system speak cut
piitlicaily against it because when a person has been found guiltj'
they are at the mercy of the system. The prosecutor recommends
their sentence, the trial Judge imposes their sentence and fine
and then they enter the custody of the Bureau of prisons where
there is a wile variation in treatment and conditions. After
serving at least one-third of their sentence they are at the mercy
17
C'f tire larol^ I carl for an «ariy releasee A person wr.c tr.ekt£
waves will receive a longer sentence » higher fine, rougher treat-
ir.ent while imprisoned and stand leae chance of being paroled. l"ve
even teen advised by people faniliar with the "syster." that I new
ought to ssy I lid something wrong so things will te easier for re
fren, here on out. Obviously, I refuse to compromise my prirciplee ,
v.'hen you realize that only 5H of our population becomes
entangled with our criminal legal system and that of those are
feund guilty, it means that less than iof of our population is
ever acquitted. Those statistic! alone demonstrate the sham of the
system. The ?. cf i:< is a tiny voice and only a few of them sjear^*
cut , such John Jelcrean and governor “Jwin Td wards, and they are
so few and so tainted that no one pays any attention and the
atrocities go on and on.
Generally most people and specifically mest elected officials
do net like dealing with unpopular or unpleasant issues. They
prefer to ignore problems that need to te addressed unless public
pressure demands a solution. Then, like water, they take the course
of least resistance. I regret th at many times during my legislative
career T was an example cf, rather than an exception to , that
principle. Cf course if I had followed that principle as Treasurer
and pail linny Thornburghs "urepean travel voucher and let the
ftate 1:1 ice continue to haul the Thornburgh greduate student to
Massachusetts and the Thornburgh prep .school student to Icnnectiout
we wouldn't be here today, ’.vhat has happened tc me is an example
cf an unconscionale issue that most people would rather ignore than
address, rut fortunately their ere exceptions in the private and
public sectors.
I realize that you are news reporters and that I am ;‘U£t
ancther peice of meat to you. ?ut I hoptthat something that
I've revealed today penetrates : .through the cynicism and callous-
ness That is the ate retype of ycu profession and that some cf
you will help because it is the media that creates the public
pressure tc address the unpopular issues.
18
y \t\ ri
r ri ca c • o I
t
!;any cf ycu rej.reser.*. large media corporations such as the
the Ihilalelphia papers, the >ittsburch papers, and Iroup u
radio and television, Vcur employers posess the resources to
carry on national crusades for reform. It is to late for me
tut certainly the current low level of our American legal system
is ripe for their immediate attention. It is not as sexy or as
exciting as the Iranian arms deal but it is long term and mere
important to the American people ani the survival of our form
of gevernr-ent .
I would also urge you and your media employers to work for
the repeal of the death penalty unless the test would be absolutely
no doubt, I regret that cn several occasions when I was a member cf
the legislature that i voted for the death penalty. As a result
cf what has happened to me in thie* case I am convinced that
innocent people have been found guilty auid have been executed.
The ':eil Ferber case that was discussed on 6 0 Minutes on Jan. 11,
19S7 is proof that it can happen right here in Pennsylvania.
Arcuni the turn of the century the muckraking journalist
Lincoln Steffens authored the took, T he Shame of the Cities.
::is book was largely responsible for much needed improvement in
the living condidtiens and working conditions of the slum
dwellers in Americas* cities,
line: In Steffens journalistic goal was to see if the
shameful facts, spread out in all their shame, would net burn
through our civic shamelessness and set fire to American pride.”
lerhh^p what America needs most now is another line c In
Steffens, an author who will write a test selling took entitled,
"thl s?:A:;i o? our law”.
As my political career draws to a close I want to thank the
peep/vwho made it possible, beginning with the good people of
rrawford 'Tounty who in 1964, had the faith to elect a Zi year old
as the youngest irier.be r of the Jeneral Assembly. And then the pe:ple
of Trawfori, rrercer and Teaetern ?rie counties who in 197C,
elected n.e to the ftate Senate. Thanks to the voters cf i sr.nsyivani-:
uho electsd re Treasurer in 1T50 and in 1 r34 saw through the shen.
Cf the TTA allegations and re-elected .me by a margin of 71C,C’-C vote?.
In all : have participated successfully in 9 Primary eiectiens , 5
(Tcntact Duke rlershcck or Tregg ienny at the Treasury >ress office
for the last page, Jwyer Treasury acccnpli 5 h*ents etc. 7l 7-'6T- .
FBI PH HRA
JAN 23 ’ 87
T'#
# ♦ j
i
MiDd>KDK.akun
■The Dwytr Matter
wluUff our system of Justice.
Even laymen untrained in
leeal matters cuM^d set* in cer*
im proceidings me grounds
foranner*. *
* -'m Jury at one point ask-
ed lor a re-reading of one
witness*! testimony. But the
Judge discouraged this re-
reading by saying It could
take up to three days to com-
plete. Such expedience does
not serve Justice, as the ap-
peals court well may rule.
-The Jury was not se-
questered and thus was ex*
posed to any and all accounts
of the case and Us
background. That the Jurors
may nave been influenced is
moot, but certainly the
chance existed.
Throughout the entire mat-
ter, we*ve been troubled by
Dwyer's accusers. Those who
presented the most damaging
testimony either conceivea
the scheme or i-e directly
and personally Involved. The
accusers either have been
: We, like many of Dwyer's convicted or have been
friends here, want in f^very panted immunity for their
way to believe him when he testimony. That means they
maintains: ‘*1 have done have nothing to Jose but much
nothing wrong. I did not let to uin.
the people down. The system Regardless of the outcome
let me down." of appeals, Budd Dwyer has
Dwyer maintains his in- h ad nis career in government
n oc e ini ' e "H b m u r tf. closed — ahn Fennsyivamans
When Slate Treasurer R.
Budd Dwyer was indicted
early this year for his alleged
role in the Computer
Technology Associates
bribery scandal, the Tribune
supported his decision nui to
step aside as treasurer.
With his conviction in the
case, however, he did the prt^
per thing In immediately tor*
nine over the office operation
to iMputy Treasurer Donald
Johnson. In so doing, hi 'll
have no part in the depart-
ment's functioning ana no
contact with the office, the ac-
ting treasurer or department
personnel. He also had given
up his salary. •
While he hasn't formally
resigned, pending the out-
come of his right of appeal,
for all intents and purposes
that's (he exact result of his
decision to step aside. At this
point, we have no strong feel-
ings either way about
whether he makes it formal.
__ _ _ _ _ _ _ I Pennsyivan
tion and often flemdiatfatea j, ji # ‘y
Integrity arc persuasive fac- nig n iy aiinffllllc puptic ii r-
._i we aw finding that he
has not losl~lhe respect and
> Of most area
Integrity are oersuasive rac- RTi
rors*^es£eci^r_k - —
t th^ lestlmorr
points up bow
COft-
con-
trast the
■ ■ . ■ ,
This case points up b^ im<
portant the appeals process is restdeots .
ormm
Scope of Search: (Check One)
□ Automated Data Base {ADB)( Individual Born 1 962 and After) 5
□ Restricted Search (Active Index - 5 & 20)
□ Restricted Search (Active & Inactive Index - 5 & 30) -b /
dlHdrif^ricted (Active & Inactive Index)
Type of Search Requested; (Check One)
■Q^jT References (Security & Criminal)
□ Security Search
□ Criminal Search
□ Main _
Special Instructions: (Check One)
□ Exact Name Only (On the Nose)
□ Buildup □ Variations
References Only
DOJ
b6
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UNCLASSIFIED
1/26/87
Judge ,
RE: R. BUDD DWYER,
TREASURER OF PENNSYLVANIA;
ET AL;
HOBBS ACT; CONSPIRACY;
ITAR - BRIBERY; MF;
00: PHILADELPHIA
SYNOPSIS ; R. Budd Dwyer, Treasurer, Commonwealth of
Pennsylvania, indicted on 5/13/86, by Federal grand jury (FGJ),
Harrisburg, Pennsylvania, charging violations of Conspiracy, Mail
Fraud, ITAR-Bribery , and Perjury, was convicted in U.S. District
Court on 12/18/86, having been found guilty on all counts
following a jury trial. He was scheduled for sentencing on
1 / 23 / 87 . On 1 / 22 / 87 , Dwyer committed suicide publicly during a
scheduled press conference.
€
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DETAILS : Investigation was initiated on 7/6/84 based upon
predication from the Office of Auditor General, Commonwealth of
Pennsylvania. The investigation focused on John Torquato, hidden
owner of Computer Technology Associates, Incorporated (CTA) of
California, who was seeding to do business with Pennsylvania. It
was alleged that Torquato through the assistance of Dauphin
County Republican Committee Chairman William Smith, was
instrumental in obtaining an amendment to existing law allowing
the Treasurer of Pennsylvania to collect $25 million in
overpayments made by Commonwealth employees to Social Security
sicK leave accounts. It was further alleged that Torquato and
Smith arranged for payoffs to several politicians and public ^
officials, including R. Budd Dwyer, Commonwealth Treasurer, in
exchange for a major data processing contract for CTA to recover
the $25 million overpayments. Torquato had agreed to pay
$ 300,000 to Dwyer, $100,000 to David I. Herbert, Director of
Social Security for Public Employees, and $200,000 to others
including former Pennsylvania Republican Chairman Robert Bruce
On 10/22/84, FGJ Harrisburg indicted Torquato^ fferbert.
Smith and two others. Dwye r and Asher were not included in this
inii1 nt.mpnt. I The indi ntmentF
i'6f(iUAt6 pled giillty Aftd t^stlll^d agSlrtSt th^ dSf^AdahtS
leading to their convictions in May 1985.
1 - Mr'.' Revell ' 1
1 - Mr. W, M. Baicer ' 1
1 - Mr. Clarice 1
1 - Mr. Daniels ; 1
;l '1
- CID Administrative Unit
TCD:vf (12)
UNCLASSIFIED
UNCLASSIFIED
On 5/13/86, GFJ Harrisburg indicted Dwyer and Asher
charging Conspiracy, Mail Fraud, ITAR-Bribery , and Perjury. The
perjury charge stemmed from the testimony of Dwyer at the May
1985 trial of the other defendants in this case.
On 12 / 18 / 86 , following a month long trial, Dwyer and
Asher were found guilty based on documents and testimony
presented at the trial. Sentencing was scheduled for 1/23/87-
CURRENT DEVELOPMENTS : Dwyer called a press conference for
10:30 a.m. on 1 /22/87 , at which time he handed out an
approximately 40 page statement with a cover letter directed to
U.S. Senator Joseph Biden. The statement contained Dwyer’s
comments about the Bribery investigation and prosecution of him.
Following some brief remarks, he pulled a revolver and shot
himself.
The written statement claimed unfairness in the
prosecution and trial specifically mentioning the Trial Judge,
U.S. Attorneys Office and the FBI. Two Harrisburg Resident
Agency case Agents were referred to by name claiming involvement
in FGJ leaks and that their motivation was to obtain incentive
awards for working big cases.
The statement apparently had already been mailed to
Senator Biden and Congressman Peter Rodino. It should be noted
that the investigation was historical and based upon a
reconstruction of documents and testimony,
techniques were employed.
No^investigative
- 2 -
UNCLASSIFIED
UNITED STATES DEPARTMENT OF JUSTICE
FEDERAL BUREAU OF INVESTIGATION
4/25/88
DIRECTOR, FB]
(ATTENTION: I
ROOM 4790, FBIHQ)
SAC, PHILADELPHIA (194C-361) (SQll) (P)
NAME CHECK REQUEST / -•
Buded 4/25/88 , D\ ’ ^
Th'CV\\C\-C
Re: Bureau airtel to Philadelphia 3/25/88.
For the inf ormation of the Bure au, captioned individual
is not identical with ] | a subject in Philadelphia
file 194C-361, captioned ”K. BUDU DWYER, Treasurer of
Pennsylvania, et al; Hobbs Act, Mail Fraud, Conspiracy."
w - Bureau (194-4683)
1 - Philadelphia (194C-361) (HRA)
REB : pd
(3)
15 OCTisto
0-9 (Rev. 8-16-79)
TRANSMIT VIA: _
CLASSIFICATION:
3/25/88
Director, FBI (194-4683)
SAC, Philadelphia (194C-361)
NAME CHECK REQUEST
BUDED; 4/25/88
This Bureau is in receipt of a name check request frc
concerning the captioned individual, copy of which is
Philadelphia is directed to its case 194C-361, captioned
"R. BUDD DWYER, TREASURES-Xl£-£EIiMaXLVANIA , ET AL; HOBBS ACT, MAIL
FRAUD, CONSPIRACY," wher^ fippears to be one of the
subjects.
b2
We are authorized to conduct name checks for Federal, ^
Executive Branch Agencies under MAOP, Part 2, Section 9,. 9-2. 4,P^
As this investigation is pending, please contact the U. S. / hi C
Attorney ,’for dissemination guidance from a prosecutive standpoint/
on the subject. I
Philad ^lnhia ts to asc ertain if captioned individual is^
identical to the| |.n your case 194C-361. If
gdetermined to be identical, Philadelphia is to submit the results
of this contact by Air tel and LHM suitable for dissemination.
setting forth the facts of the case tl
^ the USA*s opinion to the attention off
Service Unit, Room 4790, FBIHQ.
..juifclosure ^
ijeSEblnv . ,
Allies - Mr ■ I
. 1 -I I Room 3849 1 ^
i di sseminated and
^Name Check and
APR 19 igQg
OT' N€)rB; ThisSnatter was coordinated with
■^.rr„ "Th yestigative Division. j
WW'V. I
'her, M.
.Tocr.
Ttjjifwo-^ ---
OW •iiatacr. A
Af>a
Teiephone Rm
ttroctof* Sec y - -,:i I I -
Criminal
ei/DOj
FD-36 (Rev. 8-29-85)
b6
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TRANSMIT VIA:
□ Teletype
□ Facsimile
m AIRTEL
FBI
PRECEDENCE:
□ Immediate
□ Priority
□ Routine
5
6
7
8
9
10
•1 1
12
13
14
15
16
17
18
19
20
21
CLASSIFICATION:
□ TOP SECRET
SECRET
CONFIDENTIAL
UNCLAS E F T O
UNCLAS
Date 3/25/88
□
□
□
□
TO; DIRECT^ FBI
HILADELPHIA (194C-361) (HRA) (P)
R, BUD^WYER, TREASURER O^^NNSYLVANIA;
ET AL;
HOBBS ACT; MF; ITAR; CONSPIlSCY \
(00: PHILADELPHIA)
Enclosed for FBIHQ are two copies of an FD-302 dated 3/24/88,
in regard to the captioned case.
The captioned investigation has been a very high-profile corruption
case which resulted in numerous indictments and convictions of several
individuals, one of whom was R. BUDD DWYER, former Treasurer of the Commonwealth
of Pennsylvania. On the day prior to his sentencing, DWYER publicly committed
suicide and at that time made numerous allegations concerning his prosecution
and conviction. Most of the allegations centered around malicious, selective
prosecution and plea bargaining in regard to individuals connected with
subjects and witnesses connected with this case.
The Office of Professional Responsibility in the Department of Justice
conducted an extensive inquiry in regard to Acting United States Attorney
(USA) JAMES J. WEST, Middle District of Pennsylvania, Harrisburg, Pennsylvania,
and his handling of the case. Their investigation resulted in findings that
there was absolutely no wrongdoing whatsoever on the part of USA WEST or anyone
else in connection with the DWYER investigation and prosecution.
Recently, a 96-page pamphlet entitled "THE SINS OF OUR FATHERS ",
referred to in the enclosed FD-302, appeared on the newsstands in the
Harrisburg area. A review of the pamphlet indicated that two free-lance writers
have been working for some time in regard to the DWYER case and other corruption
matters in an effort to historically attempt to re-construct their views of
corruption in Pennsylvania. As PVt in the FD-:^02 , they
attributed direct quotes tc| | Some of
these quotes allege wrongdol^ on the part ot Attorney General and other
unknown Department ofMJiUStii'ibS^officials in ref erence, to the political^handling of
(S (E.S. /CJ>.
2- Philadelphia
DJMidrj
(4)
(194C-361)(HRA)
APR IS 1388
Approved;
Transmitted
(Number)
(Time)
16MARt^'^989
tlie,DV7YER prosecution and the Department's subsequent review of
USA west's activities.
b6
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A review of the pamphlet also indicated that the two
authors attempted to have their findings published by three
reputable newspapers and their story was rejected.
USA WEST has forwarded a copy of the entire publication
to JOHN C. KEENEY, Deputy Assistant Attorney General, in the Justice
Department at Washington who, through. the years, has been overseeing
the DWYER investigations and prosecutions. USA WEST advised that
KEENEY advised him they would review the information and make a
decision as to whether or not it should be forwarded to the Special
Prosecutors' office or the Department's Office of Professional
Responsibility.
srT
SSI
thaF
that based
the Ebi would interview his
USA WEST was advised by
on the source of the allegations,
3 to determine if,
02 reveals thatj
said any of the things attribute LU llUl Wlllllh pertain to any
allegations of wrongdoing on the part of Attorney General MEESE or
USA WEST.
in fact , sh e said these things,
Idamantly denied having
III IIUF Ull I rh nArt-flin
b6
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interview are completely
in the pamphlet, her information
has been supplied to USA WEST so that he can forward it to Deputy Assistant
Attorney General KEENEY.
Because of the nature of this information and the high-profile
this case has had, information is being supplied to FBIHQ in the
event that they have inquiries from the Department. If the need arises
for any further Information, contact should be made with SSRA
DAVID J. MALARNEY, Harrisburg Resident Agency, Philadelphia Division.
Because the results of
contrary to information attribut'ed to he"
n ted to he i
FD-761 (8-8-88)
FBI
TRANSMIT VIA:
□ Teletype
□ Facsimile
[X] AIRTEL
PRECEDENCE:
□ Immediate
□ Priority
□ Routine
CLASSIFICATION:
□ TOP SECRET
□ SECRET
□ CONFIDENTIAL
□ UNCLAS EFT
□ UNCLAS
Date 10/28/88
Subj^cT^T^lic Corruption Data Transmittal Form ? x i
. .... , R, BUDD^fdwYER, Treasurer of Pennsylvania;
1. Title: (use additional page if necessary)''prr^ :^y ' ^^ =^ — — — ^ '
HOBBS ACT
(00: PH) fj (T)
'dd
2. □ Enclosed are the original and three copies of a'bHM'foF-diesenUnatkm^jE>i»i 4 )dsesv=^
(check if appropriate)
3. Office of Origin File No. (inciude aipha)
4. [B Initial submission □ Supplemental submission (check one)
5. Date opened upon SAC authority 6/27/84
6. Level of subject official (See codes on reverse. Use additional pages, as necessary, for
additional subjects.)
Level L03 Number of Subject(s) 1
Level L09 Number of Subject{s) 1
Level Number of Subject(s)
7. Indicate which of the following investigative techniques have been utilized to date.
(check all appropriate boxes)
Code Number / Description C
Z1 □ Acct. Tech. Assist. 2
Z2 □ Aircraft Assist. 2
Z3 CK Computer Assist. 2
Z4 Qc Consensual Monitoring 2
Z5 □ Elsur - FISC 2
Z6 □ Elsur -Title III 2
27 □ Eng. Sect. Field Support /
Z8 □ Eng. Sect. Tape Exams 2
Z9 □ Hypnosis Assist. 2
Z10 □ Ident Div. Assist. 2
Z11 (A) □ Symboled Informant 2
Z11 (B) □ Cooperating Witness 2
Z11 (C) [IK Cooperating Subject 2
Z12 CKLab. Div. Exams 2
Z13 □ Lab. Div. Field Support
^Field Office 1- 194A-361; 1- 193-130
WFBIHQ
(1 - White-Collar Crimes Section, Public Corruption Unit)
DFJidrj
(5)
Code Number / Description
Z14 □ Pen Registers
Z15 □ Photo Coverage
Z16 S Polygraph Assist.
Z17 S Search Warrants Use
Z18 □ Show Money Use
Z19 □ Surveillance Squad Use
Z20 □ Swat Team
221 □ Tech. Agent
Z22 S Telephone Toll Records
Z23 □ Group I UCO
Z24 □ Group II UCO
Z25 □ Undercover - Other
Z26 □ NCAVG/VI - CAP )
Z27 □ VIA ^ ^
7 NOV 8 1988
‘^ATE:
:CS, RM 3849
Codes for Levels of Officials
Federal |
KOI
President
K02
Vice-President
K03
Cabinet Level
K04
U.S. Senator
K05
U.S. Representative
K06
Judge
K07
Prosecutor
K08
Law Enforcement Official
K09
Federal Employee, GS-1 3 and above
K10
Federal Employee, GS-1 2 and below
K11
Military Personnel, commissioned
K12
Military Personnel, non-commissioned
j State \
L01
Governor
L02
Lt. Governor
L03
Cabinet Level
L04
Senator
LOS
Representative
L06
Judge
L07
Prosecutor
LOS
Law Enforcement Officer
L09
State Employee, managerial or above
L10
State Employee, less than managerial
I Local I
M01
Mayor - Field Office or SSRA city
M02
Mayor - Non-Field Office or SSRA city
M03
Legislator (Commissioner, Council-
man, etc.) Field Office or SSRA city
M04
Legislator (Commissioner, Council-
man, etc.) Non-Field Office or SSRA
city
M05
Judge - Field Office or SSRA city
M06
Judge - Non-Field Office of SSRA city
M07
Prosecutor - Field Office or SSRA city
M08
Prosecutor - Non-Field Office or SSRA
city
M09
Chief of Police - Field Office or
SSRA city
M10
Chief of Police - Non-Field Office or
SSRA city
Mil
Sheriff - Field Office or SSRA city
Ml 2
Sheriff - Non-Field Office or SSRA city
Local (Continued)
M13
Law Enforcement Officer - command position
Field Office or SSRA city
M14
Law Enforcement Officer - command position
Non-Field Office or SSRA city
M15
Law Enforcement Officer - ranking officer
Field Office or SSRA city
M16
Law Enforcement Officer - ranking officer
Non-Field Office or SSRA city
M17
Other Elected Officials - Field Office or
SSRA city
M18
Other Elected Officials - Non-Field Office or
SSRA city
M19
Public Employee (appointed) - Field Office
or SSRA city, managerial level or above
M20
Public Employee (appointed) - Non-Field Office
or SSRA city, managerial level or above
M21
Public Employee (appointed) - Field Office
or SSRA city, less than managerial
M22
Public Employee (appointed) - Non-Field Office
or SSRA city, less than managerial
Territorial |
N01
Governor
N02
Lt. Governor
N03
Cabinet Level
N04
Senator
NOS
Representative
N06
Judge
N07
Prosecutor
N08
Law Enforcement Officer
N09
Territorial Employee, managerial or above
N10
Territorial Employee, less than managerial
8. Type of Corruption Investigate!
appropriate boxes)
Code Number/Description Code Number/Description
(A)
Judicial Corruption
(B)
Legislative Corruption
A1 □
Federal
B1 □
Federal
A2 □
State
B2 □
State
A3 □
Local
B3 □
Local
A4 □
Territorial
B4 □
Territorial
(C)
Contract Corruption
(D)
Regulatory Corruption
Cl □
Federal
D1 □
Federal
C2 3Q
State
D2 □
State
C3 □
Local
D3 □
Local
C4 □
Territorial
D4 □
Territorial
(E) Law Enforcement Corruption
El □ Federal
E2 □ State
E3 □ Local
E4 □ Territorial
9. Does corruption involve drug related activity? (check one) □ Yes 0 No
10. Statistical Accomplishments (number since last submission)
A.
Complaints
F.
Acquittal
B.
Informants
G.
Recoveries
C.
Indictments
2
H.
Restitutions
D.
Convictions
7_
I.
Potential Economic
E.
Pre-trial Diversions
Loss Prevented
11. Forfeiture Provisions Utilized (check one) □ Yes S No
12. Status of Case (check one)
□ Pending Preliminary Inquiry
S Pending Full Investigation
□ Closed
13. Basis for Closing (check one)
□ U.S. Attorney Declination
□ Dismissal
□ Acquittal
□ Conviction
□ Administrative by SAC (no other basis involved)
Additional Administrative Data (if needed):
FBI
TRANSMIT VIA:
□ Teletype
□ Facsimile
[x] AIRTEL
PRECEDENCE:
□ Immediate
□ Priority
□ Routine
CLASSIFICATION:
□ TOP SECRET
□ SECRET
□ CONFIDENTIAL
□ UNCLAS EFT
□ UNCLAS
Date 5/1/89
To : Director, FBI (Attention; Criminal Investigative Division)
PHILADELPHIA (194A-361) (HRA) (P)
subject : Public Corruption Data Transmittal Form
CP
1. Title; (use additional page if necessary) R. BUDD DWYE R, TREASURER OF PENNSYLVANIA
ET AL ;
HOBBS ACT; FBW; MF; CONSPIRACY
Re; (00: PHILADELPHIA)
2. □ Enclosed are the original and three copies of a LHM for dissemination .purposes/
(check if appropriate)
3. Office of Origin File No. 194A - 361 (include alpha)
4. □ Initial submission S Supplemental submission (check one)
5. Date opened upon SAC authority ^ f 21 j BA
Jiuld
6 .
Level of subject official (See codes on reverse,
additional subjects.)
Level L03 Number of Subject(s)
Level Ii09
Level
Use additional pages, as necessary, for
Number of Subject(s)
Number of Subject{s)
7. Indicate which of the following investigative techniques have been utilized to date.
(check all appropriate boxes)
Code Number / Description
Z1 □ Acct. Tech. Assist.
Z2 □ Aircraft Assist.
Z3 S Computer Assist.
Z4 S Consensual Monitoring
Z5 □ Elsur - FISC
Z6 □ Elsur -Title Ml
Z7 □ Eng. Sect. Field Support
Z8 □ Eng. Sect. Tape Exams
Z9 □ Hypnosis Assist.
Z10 '□ Ident Div. Assist.
Z11 (A) □ Symboled Informant
Z11 (B) □ Cooperating Witness
Z11 (C) S Cooperating Subject
Z12 S Lab. Div. Exams
Z13 □ Lab. Div. Field Support
Code Number / Description
Z14
Z15
Z16 S
Z17 a
Z18
Z19
Z20
Z21
Z22 a
Z23 □
Z24 □
Z25 □
Z26 □
Z27 □
Pen Registers
Photo Coverage
Polygraph Assist.
Search Warrants Use
Show Money Use
Surveillance Squad Use
Swat Team
Tech. Agent
Telephone Toll Records
Group I UCO
Group li UCO
Undercover - Othej
NCAVG/Vt - CAP
VIA
2- Field Office 1- 194A-361,: (HRA); 1- 194-130
FBIHQ
(1 - White-Collar Crimes Section, Public Corruption Unit)
i-
DFJrdr j
(5)
Approved:
Transmitted
(Number)
(Time)
1 CC TO VVCCS, RM 3849 _
DATE: 5"- i-SY BY; df.PZf-
FBI/DOJ
Codes for Levels of Officials
Federal
Local (Continued)
K01
President
M13
Law Enforcement Officer - command position
K02
Vice-President
Field Office or SSRA city
K03
Cabinet Level
M14
Law Enforcement Officer - command position
K04
U.S. Senator
Non-Field Office or SSRA city
K05
U.S. Representative
M15
Law Enforcement Officer - ranking officer
K06
Judge
Field Office or SSRA city
K07
Prosecutor
M16
Law Enforcement Officer - ranking officer
K08
Law Enforcement Official
Non-Field Office or SSRA city
K09
Federal Employee, GS-1 3 and above
M17
Other Elected Officials - Field Office or
K10
Federal Employee, GS-1 2 and below
SSRA city
K11
Military Personnel, commissioned
M18
Other Elected Officials - Non-Field Office or
K12
Military Personnel, non-commissioned
SSRA city
M19
Public Employee (appointed) - Field Office
State
or SSRA city, managerial level or above
M20
Public Employee (appointed) - Non-Field Office
L01
Governor
or SSRA city, managerial level or above
L02
Lt. Governor
M21
Public Employee (appointed) - Field Office
L03
Cabinet Level
or SSRA city, less than managerial
' L04
Senator
M22
Public Employee (appointed) - Non-Field Office
LOS
Representative
or SSRA city, less than managerial
L06
Judge
L07
Prosecutor
Territorial
L09
State Employee, managerial br above
N01
Governor
L10
State Employee, less than managerial
N02
Lt. Governor
N03
Cabinet Level
Local
N04
Senator
NOS
Representative
M01
Mayor - Field Office or SSRA city
N06
Judge
M02
Mayor - Non- Field Office or SSRA city i
N07
Prosecutor
M03
Legislator (Commissioner. Council-
NOS
Law Enforcement Officer
man, etc.) Field Office or SSRA city
N09
Territorial Employee, managerial or above
M04
Legislator (Commissioner, Council-
N10
Territorial Employee, less than managerial
man, etc.) Non-Field Office or SSRA
M05
Judge - Field Office or SSRA city
M06
Judge - Non-Field Office of SSRA city
M07
Prosecutor - Field Office or SSRA city
M08
Prosecutor - Non-Field Office or SSRA
M09
Chief of Police - Field Office or
SSRA city
MIO
Chief of Police - Non-Field Office or
SSRA city
Mil
Sheriff - Field Office or SSRA city
M12
Sheriff ■ Non-Field Office or SSRA city
8. Type of Corruption Investigated (Check all appropriate boxes)
Code Number/Description Code Number/Description
(A)
Judicial Corruption
(B)
Legislative Corruption
A1 □
Federal
B1 □
Federal
A2 □
State
B2 □
State
A3 □
Local
B3 □
Local
A4 □
Territorial
B4 □
Territorial
(C)
Contract Corruption
(D)
Regulatory Corruption
C1 □
Federal
D1 □
Federal
C2 □
State
D2 □
State
C3 □
Local
D3 n
Local
C4 □
Territorial
D4 □
Territorial
(E)
Law Enforcement Corruption
E1 □
Federal
E2 □
State
E3 □
Local
E4 □
Territorial
9. Does corruption involve drug related activity? (check one) □ Yes □ No
10. Statistical Accomplishments (number since last submission)
A.
Complaints
F.
Acquittal
Recoveries
B.
Informants
G.
C.
Indictments
2
H.
Restitutions
D.
Convictions
7
1 .
Potential Economic
E.
Pre-trial Diversions _
Loss Prevented
11. Forfeiture Provisions Utilized (check one) □ Yes □ No
12. Status of Case (check one)
□ Pending Preliminary Inquiry
S Pending Full Investigation
□ Closed
13. Basis for Closing (check one)
□ U.S. Attorney Declination
□ Dismissal
□ Acquittal
□ Conviction
□ Administrative by SAC (no other basis involved)
Additional Administrative Data (if needed):
■ FD-75irS-a-89)
FBI
'SSP
TRANSMIT VIA:
□ Teletype
Facsimile
F tlixfbAIRTEL
PRECEDENCE:
□ Immediate
□ Priority
□ Routine
CLASSIFICATION:
□ TOP SECRET
□ SECRET
□ CONFIDENTIAL
□ UNCLAS EFT
□ UNCLAS
Date 11/28/89
1^0 : DirectOi.-^l {Attention: Criminal Investigative Division)
PHILADELPHIA (194A~361) (HRA) (P)
ibject : Public Corruption Data Transmittal Form
1. Title: (use additional page if necessary) R. BUD]
ET AL;
>WYER, Treasurer of Pennsylvania;
HOBBS ACT; FBW; WF; CONSPIRACY
Re: (00: PH)
2. □ Enclosed are the original and three copies of a LHM for dissemination purposes.
(check if appropriate)
3. Office of Origin File No. 194 a - 361 (include alpha)
4. □ Initial submission 0 Supplemental submission (check one)
5. Date opened upon SAC authority 6(21 (Sh
6. Level of subiect official (See codes on reverse. Use add/tiona/ pages, as necessary, for
additional subjects.)
Level t. 03 Number of Subject(s) i
Level l 09 Number of Subject(s) l
Level Number of Subject(s)
7. Indicate which of the following investigative techniques have been utilized to date.
(check all appropriate boxes)
Code Number / Description
Z1 □ Acct. Tech. Assist.
Z2 □ Aircraft Assist.
Z3 B Computer Assist.
Z4 0 Consensual Monitoring
Z5 □ Elsur - FISC
Z6 □ Elsur -Title III
Z7 □ Eng. Sect. Field Support
Z8 □ Eng. Sect. Tape Exams
Z9 □ Hypnosis Assist.
Z10 Q Ident Div. Assist.
Z11 (A) □ Symboled Informant
Z11 (B) □ Cooperating Witness
Z11 (C) 3 Cooperating Subject
Z12 3 Lab. Div. Exams
Z13 □ Lab. Div. Field Support
Code Number / Description
Z14
Z15
Z16
Z17
Z18
Z19
Z20
Z21
Z22
Z23
Z24
Z25
Z26
Z27
□ Pen Registers
□ Photo Coverage
S Polygraph Assist.
Search Warrants Use
□ Show Money Use
□ Surveillance Squad Use
□ Swat Team
□ Tech. Agent
S Telephone Toll Records
□ Group I UCi^
□ Group II
□ Undercov^ - pther
□ NCAVG/Vf - CAP
□ VIA
Field Office 1- 194A-361 (HRA) ; 1~ 194-130
@ FBIHQ
(1 - White-Collar Crimes Section, Public Corruption Unit)
iB DEC 5
DFJ:drj
(5)
Approved;
Transmitted
(Number)
(Time)
+ 1 CC TO wees, RM 3849
' nATF :/;i-7-»
Codes for Levels of Officials
Federal
Local (Continued)
K01
President ♦
M13
Law Enforcement Officer - command position
K02
Vice-President
Field Office or SSRA dty
K03
Cabinet Level
M14
Law Enforcement Officer - command position
K04
U.S. Senator
Non-ReldOfficeorSSRAdly. '
K05
U.S. Representative
M15
Law Enforcement Officer - ranking officer
K06
Judge
FieldOfficeorSSRAdty
K07
Prosecutor
M16
Law Enforcement Officer - ranking officer
K08
Law Enforcement Official
Non-Fietd Office or SSRA city
K09
Federsd Employee, QS-13 and above
^M17
Other Elected Offidals - Field Office or
KIO
Federal Employee, GS-1 2 and below
SSRAdty
K11
'Military Personnel, commissioned
M18
Other Elected Offidals - Non-Field Office or
K12
Military Personnel, non-commissioned
M19
SSRAdty
Public Employee (appointed) - Field Office
.i: < . ■ ‘ / staM : ’
or SSRA dty, managerial level or above
M20
Public Employee (appointed) - Non-Reid Office
LOI
^Governor.'
or SSRA dty, managerial level or above
t02
□.Governor ,
M21
Public Employee (appointed) - Reid Office
> L03
Cabinet Levei • - ; • “
or SSRA city, less than managerial
L04>
Seniatcff ' A ' . =
M22
Public Employee (appointed) - Non-Field Office
L05^
L06
Representative ..
Judge
or SSRA city, less than managerial
U)7
LDB
•Prosecutor'
‘ Law Enforcement Officer /
TerTftortal
Lj09 .
State Employee, managerial dr etoove
N01
Governor
L10
State Employee, iess toanmanagerial
N02
Lt. Governor
'*
N03
Cabinet Level -
Local;
N04
Senator
1 —. '
NOS
Representative
M01
Mayor ; Field Office or SSRAdty
N06
Judge
M02
Mayor - Non-Reid Office or.SSRAdty
N07
Prosecutor
M03
Legislator {Commissioner, Council-
NOS
Law Enforcement Officer
~
man, etc.)^ Field Office or SSRA city
NOS
Territorial Employee, managerial or ^x>ve
M04
Legislator (Commi^oner, Council-
man, etc.) Non-Reid Office or SSRA
dty - -■ ’
N10
T erritorial Employee, less than managerial
M05
M06
M07
M08
M09
M10
M11
M12
Judge - Field Office or SSRAdty
Judge - Non-Reid Office of SSRA city
Prosecutor - Field Office or SSRA city
Prosecutor - Non-Field Office or SSRA
dty
Chief of Police - Reid Office or
SSRAdty
Chief of Pdice - Non-Field Office or
SSRAdty
Sheriff - Reid Office or SSRA dty
Sheriff - Non-Field Office or SSRA city
&
' 8. Type o1 Corruption invest! gated^RcK afl appropriate boxes)
Code Number/Description
Code Number/Description
(A)
Judicial Corruption
(B)
Legislative Corruption
A1 □
Federal
B1 □
Federal
A2 □
State
B2 □
State
A3 □
Local
B3 □
Local
A4 □
Territorial
B4 □
Territorial
(C)
Contract Corruption
(D)
Regulatory Corruption
C1 □
Federal
01 □
Federal
C2 □
State
D2 □
State
C3 □
Local
D3 □
Local
C4 □
Territorial
D4 □
Territorial
(E)
Law Enforcement Corruption
El □
Federal
E2 □
State
E3 □
Local
E4 □
Territorial
9. Does corruption Involve drug related activity? (check one) □ Yes S No
10. Statistical Accomplishments (number since last submission)
A. Complaints F. Acquittal
B. Informants G. Recoveries
C. Indictments ^ H. Restitutions
D. Convictions 7_ 1. Potential Economic 250
E. Pre-trial Diversions Loss Prevented L
11. Forfeiture Provisions Utiiized (check onej □ Yes □ No
12. Status of Case (check one)
□ Pending Preliminary Inquiry
C? Pending Full Investigation
□ Closed
13. Basis for Closing (check one)
□ U.S. Attorney Declination
□ Dismissal
□ Acquittal
□ Conviction
□ Administrative by SAC (no other basis involved)
Additional Administrative Data (if needed):
I
FD-761 (8-8-88)
FBI
TRANSMIT VIA:
□ Teletype
□ Facsimile
AIRTEL
PRECEDENCE:
□ Immediate
□ Priority
□ Routine
CLASSIFICATION:
□ TOP SECRET
□ SECRET
□ CONFIDENTIAL
□ UNCLAS EFT
□ UNCLAS
12/8/89
Date
To : Director, Attention: Criminal Investigative Division)
l/Frornj^-SACr-^^LADEL (194A“361) (HRA) (C)
Sjibfect : Public Corruption Data Transmittal Form •
(3>
1. Title: (use addit^j^ page if necessary)
R. BUDD^WYER,
TREASURER OF PENNSYLVANIA;
pg. ET AL; HOBBS ACT; FEW: MF; CONSPIRACY; PERJURY: (00: PH)
2. Enclosed are the original and three copies of a LHM for dissemination purposes.
(check if appropriate)
3. Office of Origin File No. 194A— 361 (include alpha)
4. □ Initial submission [E Supplemental submission (check one)
5. Date opened upon SAC authority 6/27/84 .
6. Level of subject official (See codes on reverse. Use additional pages, as necessary, for
additional subjects.)
Level LQl 3 Number of Subject(s) 1
Level _
Level
LO 9
Number of Subject(s) _
Number of Subject(s) _
7. Indicate which of the following investigative techniques have been utilized to date.
(check all appropriate boxes)
Code Number / Description
Z1 □ Acct. Tech. Assist,
Z2 □ Aircraft Assist.
Z3 S Computer Assist.
Z4 S Consensual Monitoring
Z5 □ Elsur - FISC
Z6 □ Elsur - Title III
Z7 □ Eng. Sect. Field Support
Z8 □ Eng. Sect. Tape Exams
Z9 □ Hypnosis Assist.
Z10 □ Ident Div. Assist.
Z11 (A) □ Symboled Informant
Z11 (B) □ Cooperating Witness
Z11 (C) a Cooperating Subject
Z12 S Lab. Div. Exams
Z13 □ Lab. Div. Field Support
Code Number / Description
Z14
Z15
Z16 S
Z17 [?
Z18
Z19
Z20
Z21
Z22 [?
Z23 □
Z24 □
Z25 □
Z26 □
Z27 □
, 2 - Field Office
^ FBIHQ
(1 - White-Collar Crimes Section, Public Corruption Unit)
Pen Registers
Photo Coverage
Polygraph Assist.
Search Warrants Use
Show Money Use
Surveillance Squad Use
Swat Team
Tech. Agent
Telephone Toll Records
Group I UCO
Group II UCO
Undercover - Other
NCAVG/VI - CAP
VIA
dec 28 1989
b6
b7C
A'
u-
. v«'',
•'V
M-
(T,
Approved:
f-"2oas
Transmitted
(Number)
3 TO DOJ/PIS
CC TO wees, RM 3849
DATE: la-af-gf BY: X.T.~.
Codes for Levels of Officials
Federal
Local (Continued)
K01
President
M13
Law Enforcement Officer - command position
K02
Vice-President
Field Office or SSRA dty
K03
Cabinet level
M14
Law Enforcem^t Officer • command position
.X K04
U:S. Senator
Non-Reid Office or SSRAcIty
^ K05
U.S.Representative
M15
Law Enforcement C^cer - ranking officer
K06
Judge
Field Office or SSRA dty
K07
Prosecutor
M16
Law Enforcement Officer - ranking officer
K08
Law Enforcement Official
Non-Reid Office or SSRA dty
Kog
Federal Employee, GS-13 and above
M17
Other Elected Officials - Field Office or
K10
Federal Employee, GS-12 and below
SSRA dty
K11
Military Personnel, commissioned
M18
Other Elected Officials - Non-Field Office or
K12
Military Personnel, non-commissioned
M19
SSRA dty
Public Employee (appointed) - Field Office
^ ’ State
or SSRA dty, managerial level or above
M20
Public Employee (appointed) - Non-Reid Office
L01
.Governor
or SSRA dty, managerial level or above
L02
It Governor
M21
Public Employee (appointed) - Field Office
L03
CaWnetlevel-^ .
or SSRA dty, less than managerial
L04r
Senator r £
M22
Public Employee (appointed) - Non-Reid Office
105^
L06
Representative^ .
i Judge
or SSRA dty, less than managerial
107
108
.Prosecutor
law Einforcwnent Officer .
Territorial
.109
State Emp^ee, managerid or above
N01
Governor
110 ;
State EtT^pib^^lesstK^meunageri
N02
Ll. Governor
N03
Cdt)inet Level
. / . . ; 'Local, .
N04
Senator
NOS
Representative
Mor -
Mayor - Field Office or SSRA city
N06
Judge
M02
Mayor - Non^Fieid Office or SSRA city
N07
Prosecutor
M03
Legislator (Commissioner, Coundt-
NOS
Law Enforcement Officer
man, etc.) Fieid Office or SSRA dty
N09
Territorial Employee, managerial or^ve
1 iiii 1 I ii
Legislator (Commissioner, Coundl-
mari,etc.) Non-Fieto Office or SSRA
city -
Judge • Reid Office or SSRA dty
Judge - Non-Reid Office of SSRA dty
Prosecutor - Field Office or SSRA city
Prosecutor - Non-Field Office or SSRA
dty
Chief of Police - Field Office or
SSRA dty
Chief of Police - Non-Field Office or
SSRA dty
Sheriff - Field Office or SSRA city
Sheriff - Non-Field Office or SSRA dty
1
N10
Territorial Employee, less than managerial
-i.
• f
8. Type o# Corruption Investigated all appropriate boxes)
Code Number /Description
Code Number/Description
(A) Judicial Corruption
A1 □ Federal
A2 □ State
A3 □ Local
A4 □ Territorial
(B) Legislative Corruption
B1 □ Federal
B2 0 State
B3 □ Local
B4 □ Territorial
(C) Contract Corruption
Cl □ Federal
C2 S State
C3 □ Local
C4 □ Territorial
(D) Regulatory Corruption
D1 □ Federal
02 □ State
03 □ Local
04 □ Territorial
(E) Law Enforcement Corruption
E1 □ Federal
E2 □ State
E3 □ Local
E4 □ Territorial
9. Does corruption involve drug related activity? (check one) □ Yes No
10. Statistical Accomplishments (number s/nce fast submission)
A.
Complaints
F.
Acquittal
B.
Informants
G.
Recoveries
C.
Indictments
H.
Restitutions
0.
E.
Convictions
Pre-trial Diversions
1.
Potential Economic
Loss Prevented
11. Forfeiture Provisions Utilized (check one) D Yes E No
12. Status of Case (check one)
□ Pending Preliminary Inquiry
□ Pending Full Investigation
Closed
13. Basis for Closing (check one)
U.S. Attorney Declination
□ Dismissal
Q Acquittal
□ Conviction
□ Administrative by SAC (no other basis involved)
Additional Administrative Data (if needed):
Case resulted in seven convictions; however, US Attorney, MDPA on
November 29, 1989, declined further prosecution of other subjects
based on the facts of the case*
U.S. Departing
»f Justice
Federal Bureau of Investigation
In Reply, Please Refer to
File No.
Philadelphia, Pennsylvania
December 8 , 1989
R. BUDD DWYER,
TREASURER OF PENNS^^^gTOJIA
DEPAk'i'MENT^^MUWWEAL'l'H OF
PENNSYLVANIA; DAVID i^-MlERBERT, FORMER DIRECTOR;
BUREAU OF SOCIAL SECURITY FOR PUBLIC EMPLOYEES,
DEPARTMENT OF i^Mg<rT>MnTTC>TOV CQMUDlfitmAXa
QT FEMSYLVANIA ; I
^COMMONWEAT.TH OF PENNSYLVANIA
MNNSVLVAMIA;!:
I COMMONWEALTH O:
lEH
E
COMMONWEALTH OF PENNSYLVANIA!
REPRE^NTATIVE, COMMONWEALTH 6P PENNSYLVANIA;
ROBEPfiefofeHER; CHAIRMAN OF THE REPUBLICAN STATE
COMMITTEE,,)f§R THE COMMONWEALTH OF PENNSYLVANIA;
WILLIAM 'fe^MITH; CO-CHAIRMAN, DJ^HIN COUNTY
^b6
"b7C
REPUBLICAN CO MMITTEE ;|”
I I PITTSBI ^kUH, PENNS !^ ! LVANlA,\,jpH^
^ROBEES^ORQUATO , JR. , OWNER, COMPUTER TE'CHNOLOGY
ASSbjStATES,"'l^V"^*((5TA) , NEWPORT BEACH, C^IFORNIA;
JUD^^LTJS. PiysinENT. C.T. A..; JUD Y SHOP^SMITH;
l^so known as ALAN„ROGERS
HOBBS ACT; MAIL FRAUl57^0NS PIRACY ; INTERSTATE
TRANSPORTATION IN AID OF RACKETEERING-BRIBERY ;
PERJURY; FRAUD BY WIRE
©
This investigation was opened on June 27, 1984, predicated
on information provided by the office of the Auditor General for the
Commonwealth of Pennsylvania who advised that state officials were to
receive payoffs in connection with the awarding of a multi-million
dollar contract to recover Federal Insurance Contributions Act (FICA)
funds .
This
tho
trn
i-:- f
dis'
♦ .-.■Srit; 'Tslihs
do=ur.ent 3 ,
— -r.er- /
ions
of
»F,I. It. Is th'
is loe.ne,a t.o you.
,t3 are not
acencV
ibutsd
f;p;-sncy
be
its
outside your
J •• "i' r -> ^
Investigation disclosed on May 10, 1984, the Treasurers
Office of the Commonwealth of Pennsylvania entered into a contract
with Computer Technology Associates, Incorporated (CTA) , a California
based corporation to recover FICA funds paid by and on behalf of
Pennsylvania State school employees. School districts, and school
entities. It was estimated that $25 million to $40 million would have
been recovered under this program which called for the recovery of the
overpaid FICA funds paid by employees on sick leave for the years
1979, 1980, and 1981. The contract called for CTA to be paid $7.75
per person per year for this service which for the minimum recovery
would have been approximately $5 million. Investigation disclosed a
proposal from a competing company, ARTHUR YOUNG and Company, CPA's,
would have had a maximum cost of $2.8 million dollars for the contract
but the proposal was rejected.
As a result of this investigation JOHN R. TORQUATO JR. ,
owner of CTA; JUDY ELLIS, President of CTA; and DAVID I. HERBERT,
former Director, Bureau of Social Security for piablic employees.
Commonwealth of Pennsylvania, entered guilty pleas. WILLIAM T. SMITH,
Co-chairman, Dauphin County Republican Committee, and ALAN ROGERS
STONEMAN, and attorney for CTA, were indicted and subsequently
convicted after a fifteen week trial. All five of these individuals
were sentenced to varying terms of incarceration. A second indictment
was handed down charging R, BUDD DWYER, Treasurer of Pennsylvania and
ROBERT ASHER, Chairman, State Republican Committee. After a six week
trial these two individuals were also convicted. ROBERT ASHER was
subsequently sentenced to a period of incarceration; however, State
Treasurer DWYER fatally shot himself during a press conference on
January 22, 1987, the day before he was to be sentenced.
On November 29, 1989, acting United States Attorney JAMES
WEST, Middle District of Pennsylvania, advised based on the facts in
this matter he declined further prosecution.
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